Family firms need four generations to thrive, says study
Family-run businesses say they need four relatives on average – across different age groups – to thrive and survive.
A poll of nearly 1,200 family business owners found 82 per cent believe intergenerational collaboration is key to growth.
Those polled believe the most common essential qualities older generations bring to their businesses are work ethic (48 per cent), industry knowledge (47 per cent), and mentoring skills (44 per cent).
Whilst the younger generations are most relied on to contribute social media and digital marketing expertise (49 per cent), tech-savviness (45 per cent) and innovation (44 per cent).
Business owners also report loyalty (49 per cent), trust (49 per cent), and emotional support (34 per cent) as being benefits of working with family members.
However, challenges persist, with 51 per cent saying energy costs are the biggest financial challenge they face, followed by rising running costs (50 per cent) and 39 per cent are contending with the rising cost of living.
Over a third (36 per cent) face increasing supplier costs, and 18 per cent cite more competition in their market and 85 per cent highlight long hours and lack of time to get everything done.
Entrepreneur and Dragons’ Den investor Deborah Meaden, who has partnered with Smart Energy GB which commissioned the research, said: “Family-run businesses have always been the backbone of the UK economy, providing stability, innovation, and a sense of community across generations.
“However, increased costs are a challenge, be it supplier costs or running costs such as energy.
“Something owners can do to help them to manage their energy usage and costs is to get a smart meter installed which can also help them identify where they might make some cost savings.
“These types of business have stood the test of time, and I believe they will continue to thrive in the future, adapting to new challenges while staying rooted in their family values.”
When it comes to future of their businesses, 26 per cent of family business owners say they are already dedicating a lot of time to succession planning.
It also emerged the majority do however remain optimistic, with 85 per cent confident their businesses will remain in the family, eight in 10 (82 per cent) hopeful their younger family members will step up to take the reins.
And only seven per cent foreseeing their businesses closing or being sold outside the family.
Gianluca Capilungo, co-owner of Capilungo café, London, said: “We learnt a lot from our uncle in Italy about how to run a successful business which has been invaluable especially as, like many businesses, we have experienced a lot of challenges since we opened.
“Rising costs have been an issue as pretty much everything has gone up, from produce to energy.
“Getting a smart meter was an easy thing for us to do, as it has helped us to manage our energy use and budget.
“We are invested in the business’s long-term success and making it financially secure, so we can leave it to the next generation and ensure a piece of our family heritage stays in the local community.”
The research, conducted by OnePoll, also found 85 per cent agree that sustainable practices must be integrated into their business operations.
A third of these business owners prioritise recycling, with 29 per cent focusing on energy management.
One in four (26 per cent) are working to reduce packaging waste, whilst 22 per cent are investing in more energy-efficient equipment, and 21 per cent are prioritising local suppliers.
Victoria Bacon, a Director at Smart Energy GB, said: “We know from our research that business owners are dealing with financial strain, with running costs, including energy, high up that list.
“A smart meter measures energy usage in near real-time, which means you only pay for the energy you use and no longer receive estimated bills, which can help a business with managing its cashflow.
“Family businesses clearly see the positives of generations working together and being able to play to everyone’s individual strengths. It’s good to see that the vast majority of owners are optimistic about the future prospects for their businesses.”
How to bag a bargain
SUN Savers Editor Lana Clements explains how to find a cut-price item and bag a bargain…
Sign up to loyalty schemes of the brands that you regularly shop with.
Big names regularly offer discounts or special lower prices for members, among other perks.
Sales are when you can pick up a real steal.
Retailers usually have periodic promotions that tie into payday at the end of the month or Bank Holiday weekends, so keep a lookout and shop when these deals are on.
Sign up to mailing lists and you’ll also be first to know of special offers. It can be worth following retailers on social media too.
When buying online, always do a search for money off codes or vouchers that you can use vouchercodes.co.uk and myvouchercodes.co.uk are just two sites that round up promotions by retailer.
Scanner apps are useful to have on your phone. Trolley.co.uk app has a scanner that you can use to compare prices on branded items when out shopping.
Bargain hunters can also use B&M’s scanner in the app to find discounts in-store before staff have marked them out.
And always check if you can get cashback before paying which in effect means you’ll get some of your money back or a discount on the item.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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