This supplement is an independent publication from Raconteur MediaMay 5 2009
FAMILY BUSINESS
Family business in
turbulent times
UK business is traversing a time of economicturbulence that has not been experiencedfor at least a generation. The three millionfamily firms that make up two thirds of thenation’s enterprises are fighting for survival. With thesefirms accounting for over 30 per cent of GDP, thestrength of the economy will be strongly influenced byhow the family business sector performs during thecurrent downturn, writes Grant Gordondirectorgeneral of the Institute for Family BusinessSigns of a good ownerCommunication and stewardship lead to good business ownership but also offer competitive advantageHoenomic times is thervital impor
How family firms deal with theseHexceptionally challenging eco-Hnomic times is therefore ofHvital importance, especially to thenine million plus employees whowork in one of the nation’s familyowned businesses. This is the largestsingle group of employees working inthe private sector; more than twice thenumber of people working for privateequity owned firms and two millionmore than those who work for thenation’s quoted PLCs. There areimmediate issues that need to beaddressed whilst staying true to corevalues. These include managing cashin the business in the face of the creditsqueeze, keeping loyal shareholderscommitted during leaner times andbalancing long-term goals with theneed to be nimble and responsive toimmediate pressures.In April an FT/Harris poll offered aworrying indictment of our businesscommunity’s reputation with twothirds of people surveyed consideringthe behaviour of business leaders to beunethical. The debate around businessand capitalism has rarely been sharper,so now is a good time for all leaders torevisit and renew their commitmentto the values that underpin the behav-iours and actions that guide our dailywork. We certainly do not want to be anation that checks in our values at thefactory gate or at the office door.Indeed, family firms that we meetthrough the Institute for Family Busi-ness (IFB) make it clear that values arethe bedrock on which to build a cul-ture in the workplace, which supportslasting success and sustainability. Thisholds just as true in challenging timesand for this reason the IFB Nationalpage 7Great family businessesThe family firms across the country, listed by region, that are the beacons of social responsibilityConference in June this year is debat-ing how to leverage family values forcompetitive advantage.There are broadly three core valuesthat define the overall philosophy offamily firms: entrepreneurship, long-term stewardship and social responsi-bility. Together, these values help identi-fy why the UK continues to have arobust and thriving family business sec-tor. Entrepreneurship, for example, isabout spotting an opportunity in themarket and driving innovation, puttingideas to work, or improving on an exist-ing way of doing things and making ithappen. Our nation’s business familiesare arguably the largest breedingground for the UK’s next generation ofentrepreneurs, and parents should berole models, setting the example. InContinued on page 3page 8-9Claire Adler meets…Family values provide a framework thatensures sustainability, a unified purpose and a fruitful legacy page 14