Partner Article

Family firms drive UK economy

Family businesses account for 65% of private sector companies and one in three jobs, new research reveals. Representing more than 30% of UK GDP, firms run by siblings, parents, aunts and uncles are driving the UK economy, the Institute for Family Business (IFB) report said.

There are three million family-run businesses in the UK, the study showed, 65% of the total 4.6 million private operations. The vast majority are SMEs, 56% of which are sole traders.

Those businesses also provide employment for 9.5 million individuals meaning that one in three of the country’s jobs are provided by family owned organisations. In addition, such types of businesses are a key breeding ground for entrepreneurial talent. The IFB cited the example of the millionaire Barclay brothers, owners of Littlewoods and the Daily Telegraph, who began business life as a sibling-owned partnership and now have the second generation involved.

Grant Gordon, director General of the IFB, said: “It is imperative that government and policy makers recognise the vital role that family businesses play, and we will be looking to work closely with the government to bolster further the family business sector for the benefit of all.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .