THOSE small family-owned businesses are experiencing a surge in popularity as economy looks to recover, says Mike Bowman, head of MORE TH>N Business.A RECENT study into the UK’s business sector we undertook at MORE TH>N Business with Warwick Business School revealed some interesting appeal about small family-owned firms.
Family-run businesses account for an estimated 3 million of the UK’s 4.6 million private sector businesses – or roughly 65% of all enterprises in the UK.
These small businesses are regarded as more employee-friendly, motivational, passionate and creative than non-family private enterprises – spurring on a possible surge in interest from job seekers left scarred by the recession.
The research discovered that family firms offered staff better employee welfare, more flexibility, unity, purpose and trust, not to mention less stress.
So as big businesses have continued to shed jobs and suffer a crisis in confidence, family-owned businesses are enjoying a surge in interest from job seekers. Employees, having been burnt during the recession, are seeking out jobs that offer a genuine team environment.
Lots of people tend to think family businesses offer limited opportunities, particularly in senior management positions. But that is simply not true. I think more than ever these days there are some great opportunities for non-family staff members to take on very senior roles, particularly at firms that have no succession plans.
The high job security family businesses are enjoying at the moment also presents some great opportunities to grow those businesses. Family businesses remain the life blood of the British economy and this study proves how much confidence they are injecting into the market place.
Top tips for success in family business
Support, encourage and reward family members’ commitment to the success of the business. How do you reward effort and success in your firm?
Make the most of the talents of all of your family members. Have you thought about how the different talents of people are being used?
Be clear about roles and responsibilities in management and operations – written job descriptions can provide a starting point for discussion. Are you clear who is in control of different elements of your firm’s activities
Think carefully about the separation between the finances of the business and those of the wider family. Are family assets protected if the business does not do so well
Develop a clear view of the future of the business. What does this require by way of investment and effort? Does the future involve younger family members taking over the firm? If so, do you have a clear plan for how and when this is going to happen?
