The secret to Britain’s economic resilience lies in our family businesses
What’s needed are policies that encourage family businesses to invest in professional development, governance structures, and succession planning, and these must be supported by a fiscal policy landscape that recognises the unique challenges of generational transition and supports the preservation of multi-generational family businesses. The Egon Zehnder research provides a powerful framework for conscious culture change, but it requires commitment from family business leaders to engage in difficult conversations about succession and culture. It requires advisers who understand family business dynamics and a policy landscape that supports, rather than penalises, long-term thinking. Britain’s family businesses have been building legacies and Britain’s prosperity for generations, creating not just profit but purpose. As we face an uncertain future, our sector’s model of sustainable, responsible business offers a path forward that others can learn from and adopt. The question is whether (collectively) we will have the wisdom to nurture and protect this vital sector for generations to come.
markets, evolving customer expectations, and new regulatory environments. “The answer lies in embracing what makes us unique whilst being bold enough to evolve.” Family businesses have always put people first, seeing values as assets to be protected and nurtured. They have greater freedom to experiment and innovate precisely because they take a long-term view and put next- generation interests at the heart of decision-making. The government would do well to recognise this reality and create policies that support, rather than hinder, family business succession. Changes to Business Property Relief, announced in last year’s Budget, threaten to undermine the mechanism that enables family businesses to transfer ownership between generations. Recent speculation about wealth taxes (which Chris Romans addresses elsewhere in this publication) further exacerbate this. Such policies risk destroying the patient capital and long-term thinking that enable family businesses to make such a valuable contribution to our economy.
The research identifies a sobering reality: how succession is managed makes all the difference to business wellbeing. Too often, crucial conversations are avoided or approached without the frank, detailed planning they deserve. This reluctance to address succession openly is not just a family business problem; it’s a national economic risk. When a family business fails to navigate generational transition successfully, it’s not just one company that suffers: it’s the employees and their families who depend on that business, alongside the suppliers and customers in its value chain and the communities that have grown alongside it. At Family Business UK, we hear about this challenge right across our membership. From century-old manufacturers in the Midlands, to innovative tech startups in Scotland, family businesses grapple with maintaining their distinctive culture while adapting to rapidly changing economies and erode the social fabric that family businesses have spent generations weaving.” “At worst, failed succession can devastate local
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