Family firms go from stength to strength

FAMILY run firms are going from strength to strength during the recession turning over more than £1bn a year, according to the Institute for Family Business (IFB).

New statistics from the IFB highlight the strong performance of family run firms, which include famous names including Clarks Shoes and JCB.

The institute found that most family businesses borrow less from banks and visibly make sacrifices financially if times are hard encouraging staff to have greater faith in the company’s stability during economic recession. A loyal customer base is also another advantage.

One such example is Harrogate-based Northern Energy, which is still going strong after 77 years in business.

The firm has even expanded one part of its business by creating LPG Home Heat, which supplies rural homes with LPG fuel.

Howard Illingworth, Northern Energy’s managing director, said he was immensely proud of the fim’s heritage and what his family had achieved.

“My great grandfather began Northern Energy as a coal and milk supplier for Dales farmers,” he added.

“Of course, it is not only my direct family that have ensured success in the company. We have wonderful staff too. Many have been part of the Northern Energy family for years and I think we are seen as an institution in the local community.”

Another Yorkshire family success story is Huddersfield-based firm Mamas & Papas, which recently signed a deal with Japanese group Pigeon Corporation to distribute its products.

The firm, which was founded by husband and wife team David and Luisa Scacchetti in 1981, now boasts a turnover of £115m a year and has 1,000 staff and 36 stores in the UK with another four openings planned this year.