Owners of family-run businesses are concerned about their companies’ future, new research has revealed, with 29% of those operating a family business worried their company will die out when they retire.
The research, by Direct Line for Business, also found that 21% of family business owners believe it is unlikely any family businesses will exist in future.
These owners apparently don’t believe younger generations necessarily have the desire to take on running family businesses. A third believe family members are not as interested in pursuing the family business as they were in former generations. One reason for this could be that Gen Z are more interested in starting their own enterprises, as research shows that one in seven university undergraduates are planning to embrace entrepreneurialism and start their own company after graduating.
Interestingly, a third of family business owners admit that what keeps them up at night is the thought that younger generations would make changes to the business that they themselves wouldn’t agree to.
A third of family business owners also disagree with the inheritance tax rules that they believe unfairly penalises those seeking to pass on their business as a legacy to the next generation.
“Family businesses are a huge contributor to the UK economy and it’s great to see so many companies feature relations working together to generate an income,” commented Jane Guaschi, Business Manager at Direct Line for Business.
“Family businesses offer unique opportunities for the next generations, as they are often able to gain valuable experience at a young age,” she added. “Future proofing can however be difficult, so a succession plan is essential.”
For expert legal advice on these issues, and other areas of commercial law, then contact our specialist commercial lawyers today.