European Family Businesses Are Focused on Innovation and Diversification
12th December 2019
KPMG Enterprise and European Family Business (EFB), recently released their European Family Business Barometer, a survey of more than 1600 Europe-based family businesses across 27 countries.
The research found that that family businesses are responding to an uncertain, changing world by prioritising innovation, training and education, and product diversification. Sustainability is taking on greater importance for many as well, suggesting family businesses are determined to stay relevant and intensely competitive on the world stage, adapting and thriving in a fast-changing world.
The Barometer, which is now in its eighth year, revealed that Europe’s family businesses remain positive about the future of their companies and their families at a time of rising economic and geopolitical uncertainties.
At the same time, many respondents are preparing for one of the most significant periods for any family business: succession. These family businesses are deeply involved in determining how to transfer ownership, management and governance responsibilities to the next generation and secure the future of both the business and the family.
Highlights from the UK family businesses surveyed were highly enlightening:
- 62% were confident of the economic outlook for their businesses over the next year;
- 96% have put innovation at the heart of their focus for next few years;
- 83% plan to diversify into new products and services;
- Educating and training their workforce is also a high priority for 94% of businesses;
- 76% cited retention of profits as the most attractive form of funding growth for their businesses;
- 67% said they were looking to enter new geographical markets over the next two years, compared to 35% of their European counterparts; and,
- 38% were concerned by how to motivate their family successor to join the business.
You can access the report at KPMG Family Business - 8th European Barometer.
Global Co-leader, KPMG Enterprise Family Business, KPMG Enterprise in the UK.
T: +44 207 6945453
Managing Director, Family Enterprise Practice, KPMG Enterprise in the UK.
T: +44 207 6948415