Family firms are
The headlines are largely downbeat – gloom on the high street, Brexit and rising costs – but it is a good time to be in a family business in Lanarkshire.
The ability to look longer-term while reacting quickly to change can give family firms the edge when times are challenging.
Small businesses are the backbone of the Lanarkshire community.
Everything you need can be found on your high street, from your traditional butchers, bakers and grocers to your healthcare providers, legal help and of course, shopping and eating out. Why travel out of town when you can find all you need on your doorstep?
Often family-run businesses which have been serving people for generations can offer expertise and a knowledge of their products that you cannot find so easily in a large superstore.
And throughout the UK small and medium-sized companies account for 99.9 per cent of the country’s businesses and have a combined annual turnover of over £300 billion.
They are a crucial part of Lanarkshire’s economy.
Scotland’s 200,000 family firms account for about half of the private sector.
However, barely a tenth of them make it to the third generation so there is clearly still a need for action to help family firms navigate generational changes.
Part of the key to the success of family businesses is that family firms are not answerable to external shareholders.
They have the freedom to make quick decisions and are nimble to react to change, with the ability to innovate as necessary to keep the business relevant – not just for today but for future generations.
Across Europe, recent research from the European Family Business Barometer suggests, 71 per cent of family businesses are confident about their prospects, 57 per cent have seen turnover rise in the last year and 87 per cent are committed to continuing family ownership.
The barometer is compiled by accountancy group KPMG and European