Family firms confident about future

FAMILY businesses in the UK are cautiously optimistic about prospects for the economy, according to a new survey.

Accountancy firm PwC said that in its latest Global Family Business survey 64% of UK firms are looking to expand, although 70% remain concerned about market conditions. Only 41% reported an increase or stability in operating profits and 73% said that the country’s tax regime is not supportive of enterprise.

Alison Lever, PwC’s North West head of private business said: “Despite the most challenging economic and financial conditions in decades, family businesses appear to have weathered the storm and are showing ambitious plans for the future.

“The last two years have been characterised by tougher times for all companies but family businesses, unlike many other organisations, have survived well, helped in large part by their longer term outlook and more cautious approach to debt. They have sustained a good platform for growth.”

Moreover, 69% of respondents believed that being a family businesses has helped them through the crisis.

“Unlike some companies, family-owned businesses tend to have a greater sense of continuity   and sustainability, ensuring that in periods of economic volatility they manage assets for the long term,” said Lever.

“They have also benefited from a relatively simple hierarchy and strong relationships with customers,  which has meant that they have been less likely to make employees redundant.”