New research reveals vital contribution of family businesses in the North West

Institute for Family Business

Family business is the backbone of the UK economy, and new research reveals the important role family businesses play in driving the overall growth and development of the UK economy, particularly in the North West.

The annual UK Family Business Sector Report, compiled by Oxford Economics for the Institute for Family Business (IFB) Research Foundation, reveals family firms are continuing to cement their position as the bedrock of the UK economy, as the sector grows to 4.7 million businesses nationwide.

Family businesses in the North West account for 90 per cent of all private sector firms in the region, including businesses such as Timpsons, Druerr, E.H. Booths, Bibby Line, JW Lees Brewery, and Warburtons. Additionally, there are more than 475,000 family run firms, making up one in 10 of all family businesses across the UK.

Speaking about the new report, Elizabeth Bagger Institute for Family Business Executive Director said: “This year’s report really reinforces the immense contribution family firms make to our economy and communities - especially here in the North West, which has a buoyant and thriving family business network.

"Their stewardship and clear commitment to a strong and sustainable future is hugely inspiring, and the growth of the sector demonstrates that the strong values within family firms continue to deliver real social and economic benefits.”

Family businesses are innovative, entrepreneurial and sustainable. Their continued investment and commitment to growth have seen the creation of 300,000 new jobs since 2014, boosting the family business sector’s overall employment figure to 12.2 million – almost half (47%) of all private sector employment and more than a third (36%) of the UK’s entire workforce.

Furthermore, family businesses have also significantly boosted turnover from £1.3 trillion to £1.4 trillion – accounting for 35 per cent of the UK’s private sector turnover for the entire year.

Elizabeth Bagger continues: “Whether it’s that top ten percent of our country’s largest firms, or the small local businesses we all engage with each and every day, family firms are here to stay and it is crucial that their value is recognised and championed.

“In addition, family businesses are fantastic incubators of entrepreneurial and innovative talent. They are keen to continue to invest, grow and create jobs. Long term thinking is at the heart of everything family businesses do, and access to appropriate long term finance has been a challenge for some family firms.

"We are, therefore, pleased to see the Government announce a review into Patient Capital and long term funding options, and we will work to make sure the needs of family firms are recognised in that.”

The IFB has an active network of members in the North West who meet regularly for events, workshops, family business site visits and networking.