Could the key to business success in the small sense be related to having your family around you?

Research is showing that the UK is lagging behind the rest of Western Europe as according to the report only 8% of Businesses are family owned and ran. In stark contrast Germany and France have a much higher proportion of family run companies, with 36% and 30% respectively/

An increasingly diverse ethnic mix is playing an increasingly important role in the stimulation of family ran businesses as 66% of ethnic minority businesses are family owned.

Out of the the small 8% of family businesses in the UK it appears that they are floundering when it comes to the owner making decisions as to what to do with the business after the owner retires.

Family- The Perfect Business Mix?

42% of these entrepreneurs say they have no fixed succession planning for when they retire and for those who have, only 27% plan on keeping the business in the family. It comes as no surprise then that only 16% of such enterprises have been family run for three or more generations.

Equally its worrying that family owned business are more likely to lag behind when it comes to business survivorship rates, due in part to their approach to the long term rather then aggressive business development. Probably due to the sheer cost of such an investment.

Ultimately, one of the reasons for the relative stability of larger economies in continental Europe is the significant presence of family businesses which, at least on a stylised basis, tend to be less leveraged and generally have a longer-term focus on investment and innovation