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Once again family businesses are doing the UK economy proud according to the latest lot of yearly figures. New research published on the Institute for Family Business has shown just how much family businesses contribute to the economy and the country as a whole.

The statistics for the year 2014 are very pleasing on the eye and are a further improvement on the good figures from the previous year. Employee numbers in family firms grew by 6% throughout the year, taking the total number of employees in the sector to 11.9 million. In comparison, the private sector as a whole during the same time increased employment by 4%.

It’s now thought that family owned companies make up around 10% of large business and helped to turnover £1.3 trillion in 2014, another increase of 2% on the previous year. Unlike some huge corporate giants that we shall not name, family firms have made sure that they have paid their way, contributing to £125 billion in taxes. The new data shows just how vital these companies are to business in the UK. The Chairman on IFB, Peter Armitage, describes the sector as the ‘backbone and very heart of the UK economy’, and we can’t really disagree with this comment.

The Optimistic Future

Without the ‘corporate box ticking’ that many other companies have to abide by, family businesses have the ability to move fast, mobilise the necessary funding and let innovation lead the way, as written about here by Christian Mancier. Alongside these fantastic figures on how they have performed, going forward the future also looks very positive. The new research has revealed that ambition is high upon the priority list with 49% of family firms wanting to grow in the next 12 months.

Furthermore, 43% have said that they will invest in people; improving the skills of their workforce which they hope will lead to further growth. With growth comes increased turnover, more taxes paid and higher employment – all of which are going to further bolster the economy.

Gorvins Family Business Team

Our Family Business team at Gorvins are here to provide you with legal advice to suit your business needs. We specialise in helping start-up companies to get set, help shareholders and partners make agreements for the long-term and also assist in creating a succession plan which is often the downfall of a family business. Let our expertise guide you and help you to prosper in the future by doing things correctly from the start.

To speak to an expert member of our team, call 0343 507 5151 or email familybusinessteam@gorvins.com.