15-10-2007
Family businesses significant for economy
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Family-run businesses make a valued contribution to the UK's economy, it has been confirmed.
However, according to the International Centre for Families in Business, in spite of being so important to the UK such businesses are often not fully valued or appreciated.
Findings released by Tenon Forum shows that close to 60 per cent of the UK's entrepreneurial base secure the involvement of at least one family member in the running of a business.
"[Family-run businesses] make up a very significant and under-valued and, to an extent, under-appreciated contribution to the UK's economy," said Nick Smith, a partner with Veale Wasborough Lawyers.
Indeed, of those businesses where owners play a role in the management of the enterprise, close to 25 per cent plan for a family member to inherit the business.
However, Mr Smith also noted that a lack of role definition within a family-run business can lead to the onset of conflict.