UK needs more family-owned businesses

A new report has suggested that the UK economy would benefit from a greater emphasis on family-owned firms.

According to a study from Credit Suisse, family-owned firms account for just 8 per cent of British business, while in France the figure is 30 per cent and in Germany 36 per cent.

The importance of family firms, the report argued, is that they tend to take a longer-term view of business development and innovation.

Michael O’Sullivan, head of UK research for Credit Suisse’s private banking businesses, said that the UK should seek to emulate the focus on and support for family firms that exists elsewhere in Europe.

Mr O’Sullivan said: “Ultimately, one of the reasons for the relative stability of larger economies in continental Europe is the significant presence of family businesses which, at least on a stylised basis, tend to be less leveraged and generally have a longer-term focus on investment and innovation.”