Family Business Scale-ups: Breaking Barriers to Growth
The challenges to growing and scaling family businesses
Access to markets
Access to markets is the most frequently cited barrier to expansion for mid-market and scaling family businesses, consistent with the wider scale-up population. The 2025 ScaleUp Annual Survey shows that family businesses at this stage of growth are already highly market-oriented but continue to face frictions in increasing sales both domestically and internationally.
Figure 22: What support would help create greater access to markets?
70% sell to other businesses or government (B2B)
74% sell direct to consumer (B2C)
76% peer networks / local mentors
24% exporting
goods / services outside the UK
WHAT WOULD HELP B2B BUSINESS TO WORK MORE WITH GOVERNMENT AND LARGE CORPORATES
4 in 10 better access to contracts for innovation (formerly SBRI) 3 in 10 online platform for procurement bids and showcasing your business 3 in 10 dedicated large corporates / government funding to buy from and work with scaling businesses 3 in 10 clearer guidance on how to become / qualify as a prime contractor
4 in 10 improved access to trade shows
4 in 10 improved access to key decision makers
Mid-market and scaling family businesses operate across multiple market channels: 70% sell to other businesses or government (B2B) and 73% are selling direct to consumers (B2C); 43% do both. They are also highly collaborative, with 76% working with a range of partners on joint projects and R&D, from large corporates to government bodies and universities. However, they want to see greater support for accessing domestic markets. Figure 16 below shows that four in ten mid-market and
scaling family businesses would benefit from improved access to key decision-makers when working with government and large corporates; a similar proportion want more opportunities to participate in trade shows and to access the government’s Contracts for Innovation 14 programme. Three in ten highlight the need for clearer and faster procurement routes, improved understanding of procurement processes and frameworks, and better platforms to advertise their business and bid for contracts.
3 in 10 fast track to procurement opportunities and dedicated R&D procurement
3 in 10 education on how to respond to procurement processes, including across to preferred supplier lists / framework agreements 3 in 10 collaborative ‘Test beds’ and ‘Sandboxes’, including open data, for developing innovative solutions (e.g. FCA Regulatory)
3 in 10 ‘Meet the buyer’ style events and curated matchmaking 3 in 10 access to online collaboration platforms (e.g. Konfer, Interace)
2 in 10 dedicated account manager
14 https://iuk-business-connect.org.uk/programme/contracts-for-innovation/
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