As specialist advisors to family firms here in the UK, we are delighted to be taking part in National Family Business Day 2019 and adding our voice to support family firms across the UK.
The UK’s family businesses come in all sizes, from all sectors and from all over the country. Many of these firms have been in existence for hundreds of years, passing from generation to generation, with their longevity the result of good governance, innovative family ownership and a focus on the long term that has resulted in them becoming the bedrock of communities across the UK. Others may be younger in age, but share similar values and are building forward-looking family firms of the future.
Studies in the past decade have shown that around 5 million firms are family-controlled and that family businesses in the UK account for around 25% of UK GDP, over 12 million jobs and contribute approximately 20% of all tax revenues collected by HMRC.
It is also recognised that the greatest part of Britain’s wealth is held within family businesses and that the family business sector is, therefore, a force to be reckoned with. Research undertaken by Family Business United (‘FBU’) identified that £51 billion of revenue alone was generated by the 10 largest family firms in the UK.
Family firms across the UK today are a far cry from the small lifestyle businesses that are often portrayed in the media – they are big employers, create wealth for their employees (many of whom have had generations of the same family working in the business) and invest significantly in the communities in which they operate.
The contribution made by the family business sector in the UK is significant and deserves to be recognised. National Family Business Day is a nationwide campaign to put the family business sector on the map, organised by FBU, the award-winning magazine and resource centre for the global family business community that was founded by Paul Andrews.
Here at Gorvins Solicitors, we have a dedicated Family Business Team that is proud to support family firms of all shapes and sizes up and down the United Kingdom. Out strength in depth, derived from years of experience advising family firms, means we understand the specific issues associated with family ownership and the relationship dynamics that make family firms special, and of course, can create unique tensions that are not found in their non-family counterparts.
Family businesses that recognise these challenges, develop good governance procedures, good communication, and focus on the sustainability of the business for the long term, innovating as necessary to keep the business relevant, have the greatest chances of remaining for generations to come. Furthermore, these businesses embrace the ‘familiness’ of the business and can actually use it to create a competitive advantage for the business too.
Successful family firms focus on the business and take a long term view, and with a significant number of family business owners looking to retire in the next decade, succession planning and the development of the next generation of family business leaders remains a key item on the family business agenda. Succession planning is just one of the areas where the Gorvins Family Business Team can add significant value in guiding and assisting family firms through the succession process taking a holistic view looking at both the corporate structures and family wealth sides of the succession equation.
National Family Business Day is a chance to share best practice, identify the resources available and to provide assistance to family businesses across the UK on the next stage of their journey, as well as championing the cause and recognising the contribution that these businesses make.
Family firms are the backbone of the UK economy and everyone here at Gorvins Solicitors hopes they remain so for generations to come.
More Information:
Next Generation the Only Option for Family Businesses?