Family Business Scale-ups: Breaking Barriers to Growth
Executive summary Family businesses generate growth and build into businesses of significant scale For the first time this report undertakes a
• Taken together, these mid-market and scaling firms have raised £3.2 billion in investment, which is split between traditional debt and growth equity. HSBC, NatWest and Lloyds are the primary sources of debt funding, while Business Growth Fund (BGF) is the most frequent patient growth capital backer of deals with these firms. • Mid-market and scaling family businesses are here for the long term: On average, more than 50% of mid-market family businesses are more than 20 years old with 33% more than 30 years old, while 20% of our scaling family businesses are more than 30 years old with 369 having been in business for more than a hundred years. ■ These firms are highly international , with six in ten saying that selling overseas is a priority for their future growth.
• On planning international expansions, six in ten say that selling overseas is a priority for their future growth, with the EU (66%) and North American (33%) markets cited as key areas for such expansion/growth. • More than half (59%) are also considering putting a physical presence or operations overseas, while a further 23% say they may do so. When asked about relocating their headquarters overseas, only two in ten said this is something they are considering. Family businesses are clear about what they need to foster their growth and scale • Against the backdrop of macroeconomic challenges that family businesses see as threats to their growth and investment, they most frequently cite access to markets, both in the UK and overseas, and the ability to attract and retain talent as the main barriers to scaling up further. These are followed by concerns about tax environment uncertainty and the ease of accessing infrastructure and R&D facilities.
comprehensive probe into the mid-market and scaling family businesses population, reflecting that there are nearly 10,000 such firms across the country: 8,641 mid-market family businesses alongside 2,985 scaling family firms (one in four of all visibly expanding businesses) ; 1,765 are in both segments: • They are spread across the country, with nine in ten based outside London and seven in ten outside London and the South East for both segments. The North West, South West and East of England all have significant clusters of mid-market and scaling family businesses, with three in ten based in these regions. Sectorally, they are more likely to be operating in the Industrial Strategy sectors (42% of mid- market and 51% of scaling family businesses), with a significant proportion in Advanced Manufacturing (21% for mid-market; 28% for scaling family businesses) and Professional Services (11% for mid-market; 17% for scaling family businesses).
They are innovative , with nine in ten having undertaken innovative activities in the last three years. They are growth-oriented , with seven in ten expecting to continue to scale up in 2026, five in ten planning to grow their employee headcount and four in ten aiming to increase their turnover.
■
■
Page 8
Made with FlippingBook - professional solution for displaying marketing and sales documents online