European Family Business Barometer (sixth edition) | KPMG | CY

European Family Business Barometer: Confidence in unity (sixth edition)

European Family Business Barometer (sixth edition)

Report surveys more than 1,100 family business owners across Europe, uncovering their continued confidence for the future.

Report surveying more than 1,100 responses from family business owners across Europe...

Our annual Barometer, a joint-partnership between KPMG and European Family Businesses (EFB), shows confidence levels amongst family businesses continues to be gaining momentum. Now in its sixth edition, the survey received more than 1,100 responses from family business owners across Europe (including Cyprus) and proved that, despite ongoing challenges, family businesses are confidently moving forward and planning to reinvest their profits into their business as well as seeking new opportunities that will enable them to foster sustainable growth.

As Europe moves away from the 2008 debt crisis and shows continued recovery, the optimism of these business owners remains steady. In this report, we see that 71% of family businesses showed overall confidence in their economic outlook for the year ahead. Looking back over the past year, it’s been a good period for many businesses, with the majority reporting positive results. Increased turnover was also reported by 57% of respondents, with only 13% experiencing a decline over the last 12 months.

Several highlights emerged throughout the European report analysis, including:

  • 71% of respondents reported feeling confident or very confident with their economic outlook for the next 12 months. About one quarter remain neutral about their prospects, only 2% felt negative or very negative about the coming year 
  • 56% of respondents indicated that their preference for the future of Europe would include an increase in integration
  • 57% of respondents reported increased turnover over the past year, while 27% maintained turnover and only 13% saw a reduction
  • 43% of respondents identified the “war for talent” as the most important issue they face. The availability of labor paired with the increasing cost of labor cited by 32% of respondents in putting greater pressure on family businesses
  • The need to balance family concerns and business interests was reported as important or very important to their business by 87% of respondents. This issue has grown sharply in significance each year since 2014, when 59% found it very important or important.

Concerning Cyprus results, some of the important highlights include:

  • 65% of the family businesses surveyed are feeling confident regarding their economic outlook for the next 12 months 
  • 63% reported an increase in turnover over the past year and 53% have increased their staff 
  • Increased competition was ranked as a top concern by 47% of respondents 
  • The “war for talents” is considered as a growing concern, as 32% of respondents reported the lack of skilled workforce as one of the most significant concerns of the year ahead 
  • 73% of respondents indicated that preparing and training a successor was important or very important to their business while 59% of them indicated that the next generation is already placed in management positions. 

Please see the final report for Cyprus attached with a full analysis of the results and trends identified from the companies surveyed, including the respondents’ profiles.

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