And family firms are proud of it: 77%
of the respondents to this year’s survey
believe they offer stability to the wider
economy, 74% say they look after their
staff better, and 72% believe they see
success in broader terms than simply
profit and growth. Likewise, 55% say
they take a longer-term perspective
on decision-making, and 71% say
they make those decisions faster than
their peers. Many survey respondents
also cited the advantages of direct
communications, faster decision
making, and an enduring
entrepreneurial spirit.
All of this is extremely positive, and the
fact that the big picture has remained
largely the same for the best part of
a decade is in itself a measure of the
resilience of this sector.
But the absence of any significant
change from survey to survey in areas
such as succession, globalisation, and
digital and innovation is a cause for
concern. Despite the extraordinary
longevity of some individual family
firms, the average life-span across the
sector is three generations. Typically,
only 12% make it that far, and the
number getting past four generations
falls to as low as 3%1. In some cases
selling the business is a conscious
choice and a mark of success; but
equally for many, not surviving the
transition to the next generation may
be a sign of a family firm not achieving
their long term ambitions.