Building Britain for Generations: A Policy Agenda for Family Businesses
“The financial landscape must target the right funding at family businesses to help them to invest in innovation and productivity”
With the three key financial institutions (Business Growth Fund (BGF), National Wealth Fund (NWF) and British Business Bank (BBB)) each offering distinct forms of capital, it is vital to boost awareness of what they provide and how they can better serve the specific needs of privately owned and family businesses. Greater visibility and clearer targeting would unlock far more of the support these firms deserve. The new Private Intermittent Securities and Capital Exchange System (PISCES) creates a regulated way for private companies to trade existing shares, and FBUK believes greater awareness and understanding of this platform could open valuable opportunities for family businesses to support their long-term growth and operations. Misaligned financial products lead to a capital gap for family firms. The financial landscape must target the right funding at family businesses to help them to invest in innovation and productivity, expand regionally or internationally, navigate generational transitions and contribute to the UK’s industrial and clean‑energy priorities.
Recommendations HM Treasury and the Department for Business and Trade should develop dedicated financial products for family firms and create a clear, easy to navigate ‘Family Business Products’ section within the Business Growth Service. This should give family businesses straightforward access to capital at every stage of growth, including clear information on the Business Growth Fund, National Wealth Fund, British Business Bank and PISCES. Use the Government’s convening power of growth funding to ensure banks and lenders understand family governance models and expand growth capital funds which are tailored to non-venture backed ‘asset-rich-cash-poor’ family businesses.
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