80% of family firms eye growth

Nearly 80% of family -owned businesses anticipate sales growth and business expansion over the next five years, according to a new survey.

The study, undertaken by professional services giant PricewaterhouseCoopers (PwC) said while 35% of family-run companies suffered a sales decline in the past year (compared to just 19% on a global basis), 77% are forecasting sales growth over the next five years, despite continued economic pressures.

The latter percentage is in line with the global trend among such companies.

According to PwC Ireland’s family business leader, Paul Hennessy, family firms are confident about the future and have ambitious growth plans and are dealing with the challenges presented by the continuing uncertain trading environment, with “renewed resilience”.

“They have adapted and continue to adapt their business models for a ‘new normal’,” he said.

“With the majority planning to expand in the next five years, they are confident about the future. As key contributors to our economy and society, however, a large proportion of survey participants believe that Government does not recognise the importance of family businesses.

“For example, they would like to see improved access to finance,” Mr Hennessy added.

Currently, family-owned businesses make up an estimated 40%-50% of the economy and over 40% of them feel that Government isn’t recognising their importance.

While most family companies are confident about the future, more than a quarter of them are worried about finance availability and 85% see the general economic situation being a key challenge in the coming years.

The PwC survey is an international study and those latter Irish figures are higher than the global average — with ‘only’ 14% of family firms globally worried about finance and 66% concerned about the economic climate.

Only 5% of Irish family- owned firms expect sales to shrink in the next five years, however.