Family Business Survey
When your family are also your business partners, you have to think about the future in a different way.
The contribution of family businesses to the Australian and New Zealand economies is significant. They account for approximately 70% of all businesses and employ 50% of the workforce. But what is keeping this sector up at night?
We are delighted that so many family business leaders took the time to complete Family Business Australia and Family Business New Zealand and Grant Thornton's Family Business Survey 2021 - Australia’s longest running survey into family businesses (having first been published in 2005). It has given us a unique insight into how family businesses have fared over the last 18 months and their prospects for the future.
Generally speaking – family businesses are optimistic. However, if we look closer, we see that the family firms with strong governance in place and that are 'transition-ready' far outperformed their peers in terms of resilience in the past, prospects for the future, and overall satisfaction with their achievements.
Some of the key themes we explore in the report
Succession remains a critical issue for family businesses
'Transition-readiness' is connected to better financial performance
Lack of investment in governance is a risk to family and business
Sources of conflict varies across generations
Gender isn't a factor in priorities or satisfaction
The call to action for all family businesses, particularly in these uncertain times, is to invest in good governance. Seek outside advice, put in processes to bring the family together, and even if you are not prepared to transition out of your business in the short term, it pays to prepare your future successor well in advance. It all comes down to building a healthier and more resilient business with the best chance of being handed down successfully to the next generation.