New research shows positive sentiment across UK family businesses
New research from PwC reflects increased confidence from UK-based family businesses in their prospects for further growth in the coming years. The Family Business Survey found that, as compared to their peers in other countries, more UK-based respondents expected to grow their businesses over the next two years – a sentiment that we have seen ourselves amongst our valued family-owned business clients, and in the positive atmosphere arising from our recent sponsorship of the BDO Private Business Awards. Of particular note is the identification of the greatest opportunities to achieve that growth, with 55% of respondents in the UK referencing technology and AI as the greatest areas of opportunity. Again, a takeaway that we recognise amongst our own client base, with an ever-increasing trend in tech-related M&A activity, whether by way of bolt-on investments or to enhance own-business function.
Whilst the report is welcome, it also reflects some caution, in particular UK respondents’ identification of tax challenges having an impact on their businesses. Whether or not there will be more of those challenges arising out of the government’s Budget in November remains to be seen.
Although a cautious approach suits many at present, 68 percent of family business leaders expressed confidence that their decision-making agility helps their organisations adapt to change. When asked which global megatrends had the most impact on their family businesses over the last year, UK respondents highlighted economic volatility (68 percent), workforce challenges (45 percent), and geopolitical issues (42 percent). 74 percent singled out tax challenges – more than double the global average.