Building Britain for Generations: A Policy Agenda for Family Businesses
Accessing Finance and Business Support Family businesses grow differently. Without access to equity markets or venture capital, they rely on retained profits, bank debt, Better Understanding of the Family Business Financial Ecosystem
Larger family firms said they were more likely to utilise retained profits, equity investment and patient capital than smaller firms, which were more likely to use Government-backed loans or traditional bank loans, or not utilise any form of finance over the next 12 months. However, family firms need support with attracting the right form of finance at the right time of their business journey.
Fig.2. below shows that family firms are keen to use a variety of financial products to achieve their growth potential.
and patient capital, and they are disciplined about it, because they are spending their own money and the next generation’s inheritance. That makes them attractive to lenders, but it also leaves them underserved: the financial products designed around exit-driven growth trajectories simply do not fit firms that plan to stay. Closing that gap, between what family businesses need and what the market currently offers, is what this section addresses. We need to foster a financial and business environment that recognises family businesses as both a reliable long‑term investment and an appealing opportunity for alternative forms of finance, enabling support for the most innovative and fastest-growing privately owned and family businesses. FBUK research showed that more than eight in 10 (83%) family businesses accessed at least one source of finance over the past 12 months. However, of those that did access finance, only 47% said it was ‘easy’ to access it. Just over two in 10 (22%) micro family firms said it was ‘easy’, with 59% of large firms saying it was ‘easy’. 9
Fig.2 Looking ahead over the next 12 months, what types of finance, if any, would most help your family business to grow?
Retained profits / self-financing
30.6%
Grants / public funding
29.3%
Equity investment that allows family control to be retained
29.0%
Traditional bank lending
28.8%
Government-backed loan schemes / guarantees
25.4%
Long-term / patient capital
22.0%
Asset-based finance (e.g. leasing, invoice finance)
20.4%
Private debt / alternative lenders
15.8%
No form of finance would help my family business invest and grow over the 12 months Other
11.8%
0.5%
0
5
10
15
20
25
30
35
9 Censuswide Survey commissioned for Family Business UK, Jan-Feb 2026
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