Our Family Business Survey 2007/2008 canvassed the views of the top management of 1,454 family businesses across 28 countries between 5 February and 15 June 2007.
Seventy percent were optimistic on their outlook for the next 12 months, and most felt they were well placed to capitalise on new opportunities and that their companies were somewhat, or very, competitive.
Although they were generally optimistic, there was little sign of complacency. There was generalised concern over market conditions, which could reflect concern over an economic slowdown and concern over labour shortages—the ability to recruit suitable skilled staff. The impact of these challenges is reflected in the investment priorities for the coming year, with human resources at the top of the list, followed by sales and marketing.
A number of questions looked at issues that are specific to family businesses, such as passing ownership or control to the next generation. Almost half of the responding companies had no succession plan, despite the fact that one-quarter of the companies surveyed are due to change hands within the next five years and half of these are expected to remain in family hands. A surprisingly high percentage of family business owners have failed to gauge their potential tax exposure arising from succession.
More than one-third admitted to conflicts over their future strategy and a quarter have quarrelled about the competence of family members actively involved in the business or who should be allowed to work for the company. Seventy percent have not adopted any procedures or have defined criteria for resolving conflicts.
Not surprisingly, almost two-thirds of respondents consider simplification of the tax regime/reduction of the tax burden should be a top priority of the government over the next three-to-five years and they would also welcome help in creating closer links with academia.
