“As a guardian of the business, I want to pass it on to the next generation in a better condition than it was given to me.”
UK respondent to the Global Family Business Survey 2010
The tough economic climate may be pushing more family-owned businesses to decide who their successors will be.
In our survey, two thirds of companies with a succession plan said they were expecting the business to be passed to other family members and 52% had already chosen their successor.
This represents a marked increase from our previous survey and could perhaps be a reaction to the uncertainty of the last two years. One of the biggest risks facing any family-owned business is the transition from one generation to the next.
Tax and legislation have remained concerns: 42% said they were particularly concerned in this survey, which compares with 61% in 2007. But 73% said that the tax regime is not supportive of enterprise and 46% believe that reducing the administration burden should be the Government's priority.
What they crave the most is a period of stability and clear signposts for monetary and fiscal policy over the next five years.