European Family Business Barometer - sixth edition | KPMG | UK

European Family Business Barometer (sixth edition): incorporating UK results

European Family Business Barometer - sixth edition

How confident is the European and UK family business sector? Our report shares the views and approaches families are taking for continued success, in light of challenges such as the ‘war for talent’.

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Head of Family Business Consulting

KPMG in the UK

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European Family Business Barometer (sixth edition): incorporating UK results - people barometer

Family businesses across Europe are feeling good about their future. That’s the message from our new annual survey, which this year received more than 1,100 responses from family business owners across Europe. Despite ongoing challenges, these businesses seem to be moving forward confidently: they are planning to reinvest their profits into their businesses and seeking new opportunities to help them foster sustainable growth.

Within the UK, we find ourselves in a unique political and economic situation. In this report, we show what family businesses are thinking about their prospects for the future, and compare the view from the UK with those elsewhere in Europe. Despite the current uncertainty, UK family businesses are demonstrating their resiliency and resourcefulness, with some 84% confident about their performance over the next 12 months.

Key commercial findings:

  • 71% report feeling confident or very confident in their business’s prospects for the next 12 months. A quarter are neutral, with only 2% feeling negative.
  • 57% report increased turnover over the past year, while 27% maintained revenues and 13% saw a reduction.
  • Of those that experienced an increase in revenue, 74% of the business leaders plan to reinvest it.
  • More than a third (36%) state that a decline in profitability is a key concern.

Key family findings:

  • The need to balance family concerns and business interests is important or very important to nearly nine in ten (87%) of those running family businesses. This issue has grown sharply in significance each year since 2014, when 59% found it very important or important.
  • 84% of respondents indicated that preparing and training a successor was important or very important to their business, though only 22% have a succession plan in place for the role of CEO.
  • The same proportion are preparing to hand over the management to the next generation in the coming year, while 10% intend to appoint an external CEO.
  • Half of businesses have a member of the family’s next generation in a management position.

Read the full European Family Business Barometer (sixth edition): UK Edition.

To discuss any of the findings from the report or discuss how we can you, please contact us.

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