Family businesses will contribute £218bn a year to the UK economy by 2018 – Barclays

FIRST generation family-owned SMEs are set to see their revenues rise from £540bn a year to £661bn by 2018, according to Barclays.

This increase has been highlighted in a new report by Barclays Business. The report found first-generation family SMEs currently contribute £180bn in gross value added (GVA) to the UK economy, an annual contribution that is set to rise by 21% in nominal terms, reaching £218bn in 2018.

According to the report, the value of family SMEs, taken as a group, to the British economy is currently greater than that of the overall manufacturing and wholesale or retail sectors.

Caroline Pullich, head of Barclays Business in Yorkshire said: “Family SMEs play a powerful role in the UK economy and one that is set to increase if they have the right access to support and funding. Whether they aspire to become a household name like J Sainsbury or Arcadia or simply to provide a strong income for their own family, they offer the country value through both their economic contribution as well as their employment opportunities.”

The Family Affair: Spotlight on UK Family SMEs report, conducted by Barclays Business and CEBR, found that there are currently 2.42m first generation family SMEs in the UK – the highest number since the recession took hold in 2008, when the figure stood at 2.45m. The number of family SMEs has increased over the past three years, up from 2.32m in 2011. That number will rise further – to 2.65m by 2018, according to Barclays.