Territory insights

About the Survey
 
About the PwC Family Business Survey 2012
We’ve talked to almost 2,000 respondents, large and small, around the world, from both developed and emerging markets, across a broad range of industries. We found remarkable similarities among the diversity.
Scaling Up
 
Scaling Up
The next frontier for more and more family businesses is overseas expansion: 67% of respondents had some level of international sales in 2012. By 2017, that number will jump to 74%.
Skills
 
Skills
Recruiting and retaining the right talent is a challenge for family businesses: 64% of them are planning to bring in non-family management in 2012.
Succession
 
Succession
While 4 in 10 respondents will pass on ownership and management to the next generation, 25% will pass on ownership but bring in professional managers,citing the next generations lack of skills as an issue.
Territory insights
 
Territory insights
While our survey revealed striking similarities among all family businesses, we found -- as might be expected, given the vastly different regional economic conditions around the world -- some significant variations in outlook and habits.
Download
 
Download the Survey
Read our report on what family businesses in 2012 are thinking and planning as they look to compete in an increasingly global marketplace.
 

From Singapore to South America, our Survey looks at the unique challenges that family businesses face regardless of where they are in the world.

Australia

We know that family businesses contribute significantly to the economy, and also to job creation, talent development, and innovation; and keeping the market buoyant is critical. We hope the PwC Private Clients Family Business Survey provides a useful benchmarking tool for you in achieving this aim.

  • Fifty six per cent of family businesses reported sales growth in the past financial year.
  • Key challenges to growth in the next five years are the economy, competition, innovation and talent.
  • Advantages of being in a family business are motivation and values, agility, freedom, continuity, and a longer term view.
  • Disadvantages of being in a family business are access to capital, family politics, talent and succession.
  • Family businesses believe they play a vital role in creating jobs and a stable economy.
  • Respondents believe they may need to float, merge, or adopt more corporate behaviours to compete.
  • Family businesses believe Government should be doing more to level the playing field.
  • Almost 40 per cent intend to pass the business to the next generation.

Visit pwc.com.au/private-clients/publications/family-business-survey to download the full Australian results PDF.

Canada

Canadian family businesses have performed relatively well over the past year and continue to strive for steady, measured growth. Although confident they will achieve their future growth prospects, family businesses will need to focus on innovation, international expansion and strategies to attract the right skills and talent to effectively compete in the long-term.

Visit www.pwc.com/ca/familybusiness for more information and to download a copy of the report.

  • 60% of family businesses in Canada have experienced sales growth over the past 12 months
  • 88% are looking to grow over the next five years
  • Attracting the right skills and talent, competition, the economy and the need to innovate will be the key challenges to growth over the next five years
  • Family businesses in Canada feel that they play a vital role in the country’s economy, including job creation and adding stability to a balanced economy
  • 65% do not generate sales from exporting goods or services to foreign markets
  • 51% plan to pass their business down to the next generation, while a further 14% will pass ownership of the business down, but will employ non-family management
  • More than 80% of family businesses in Canada have procedures in place to deal with family conflict

Finland

Family Businesses in Finland have performed well over the last year and are bullish about growth over the next five years. 70% of the total 50 respondents have grown in the last 12 months and 94% are aiming to grow over the next five years.

  • The key challenge to growth will be attracting the right skills/talent, the general economic situation and the need to innovate.
  • Family businesses believe they hold some key advantages over non-family businesses including long term commitment, a responsible attitude towards employees and agility/speed of decision making.
  • They tend not to believe that their government recognises the importance of family businesses, and there is a feeling that more needs to be done to help family businesses including accessing finance and generally removing some of the perceived (unfair) advantages enjoyed by corporations.

Read more

Greece

Thirty three Greek family business representatives took part in this year’s PwC Family Business Survey, from across several industry sectors. In their majority, they believe that they play an important role in the economy. However, they would like a lot more support from government to help them take advantage of any opportunities that arise.

  • More support from the government is needed
  • 75% predict growth over the next 5 years
  • The lack of cash flow and cost control is their main internal issue for the next year
  • The general economic situation, political and market instability are the predominant anticipated challenges for the next 5 years
  • Greek family businesses are determined to survive

Read more

India

Growth has been relatively strong in India and family businesses are very bullish with their growth goals. One in every three family businesses in the country aims to grow quickly and aggressively over the next five years.

The key issues facing family businesses in India are similar to those faced across the world, i.e., getting the right people and handling the changing regulatory conditions. Family businesses in India also view continuous innovation as the key challenge emerging over the next five years.

  • Family Businesses in India have performed well over the last year
  • About 74% of family businesses in India have grown in the last 12 months
  • Approximately 36% are aiming to grow quickly and aggressively over the next five years, compared with just 12% globally.
  • The key challenges to growth will be the need to innovate, attracting the right skills/talent, retention of staff, the need for new technology and complying with regulations.
  • Family businesses believe they hold some key advantages over non-family businesses including motivation and values within the company, a deeper understanding of their particular industry among others.
  • Family businesses in India recognise the disadvantages of attracting non-family staff into the business, challenges around succession, family politics and access to capital.

Read more

Italy

Family Businesses, the resilient model for the future of Italian economy. Discover the fresh outcome of "Family firm", 2012 PwC Global Family Business Survey, to learn how Italian family businesses’ leaders see their future looks like. And deep-dive what challenges they face to build their future, despite external conditions.

Italian 100 respondents denote a stronger-than-average drive for continuous innovation to make their growth happen. Explore the advantages of Italian family firms over non-family businesses, but also their downsides from first-hand Entrepreneurs’ experiences.

  • Italian family businesses’ leaders see company re-organisation and product & business development as their key internal issues to face to achieve growth in the next 12 months. Compared to 2010 FBS, raw material management issues tripled their importance, the concern for financial availability is more than tripled and technology doubled its relevance. Innovation represents the first priority in the longer term. Attracting talents and retaining key staff are crucial challenges to face to enable family businesses’ sustainable growth.
  • Already higher than the global average (43% of Italian family firms’ business is abroad), international sales are predicted to further rise to 53% for Italian family businesses.
    Target geographies include BRIC markets as well as growing mature ones. Find out what challenges they face to execute internationalisation.
  • Italian Family Businesses are different, often better than non-family ones. They are quicker in decision-making, warmer in working climate, longer-term minded, more passionate and able to sustain entrepreneurial spirits: these are few among the positives of Italian family firms. Discover the way to ensure these features, and to defend them from growth and increasing complexity.
  • Italian Family Businesses are and will continue to struggle for success, as well as for succession. Attracting members of next generation, to have the right people in the right place or to take the decision to introduce external management at a certain point can be by far more difficult at family businesses. Discover how 83% of Italian family firms and several global ones work around these controversial issues.

Read more

Malta

Family businesses in Malta believe they hold some key advantages over non-family businesses, such as motivation, values within the company, speed of decision making and strong internal and external relationships. However they recognise the disadvantages too, which include challenges around succession, family politics and access to capital. The differences between family businesses and non-family businesses may well be affected by how the new generation are integrated into the business over the years ahead.

  • Two thirds of family businesses are following a growth strategy
  • The general economic situation and innovation are the main concerns for the future
  • Family businesses in Malta expect more support from Government
  • Family businesses recognise the need for external management input at a certain point
  • A third of family businesses in Malta plan to pass on the ownership but not the management to the next generation

Read more

Middle East

Family Businesses in the Middle East have performed well over the last year and are bullish about growth over the next five years. 83% have grown in the last 12 months (compared with 65% globally) and 23% are aiming to grow quickly and aggressively over the next five years (compared with 12% globally)

The key challenges to growth will be attracting the right skills/talent, price competition and the need to innovate. Companies in the Middle East are less fazed by the general economic situation than family businesses in other countries.

Family businesses believe they hold some key advantages over non-family businesses including: agility/speed of decision making, commitment and passion and good intercompany and customer relationship s (leading to staff and customer loyalty)

But they recognise the disadvantages too: family politics, challenges around succession, corporate governance and keeping emotions out of the decision making.

Read more

Romania

Family businesses in Romania have performed well in the past year and are reasonably bullish about growth perspectives in the next five years: 61% expect their companies to grow steadily, while 13% aim at an aggressive growth (similar to results reported globally: 69% and 12%, respectively).

Family businesses bring stability to the economy and represent an engine for growth, but they also feel the need for their role to be recognised, both by society and Government and wait for the latter’s support in promoting a stable and predictable legislative and fiscal framework. They are encouraging higher investments in improving the country’s infrastructure and the quality of the education system, in order to better train future graduates for the realities of the labour market.

  • 71% of respondents indicated sales growth in the past financial year.
  • The key future challenges to growth will be the general economic situation (81%), the need to innovate (55%) and price competition (55%).
  • Family businesses identified some key advantages over other types of business, such as the agility of decision making, close involvement from the owners and less bureaucracy.
  • The main disadvantages referred to access to capital, the difficulty in keeping non-family staff motivated, succession planning, a lack of fresh thinking and family politics.
  • Most family businesses focus on challenges triggered by external factors, such as the market conditions (52%) or increasing competition (32%), while 42% are concerned about the tax regime and 29% about regulation and government policy.
  • They are preoccupied about staff recruitment and retention (39%) and some believe that family businesses will need to learn new skills to compete with multinationals.
  • Just over a half plan to pass the business down to the next generation, while a further 19% will pass down ownership of the business, but will employ non-family management.

Visit www.pwc.ro/pcs for more information and to download the full report on the Family Business Survey in Romania.

Russia

Russia's part of the survey covers 49 companies with the average turnover of more than $100m. Most of the family businesses in Russia are first generation companies not older than 20 years.

  • Family Businesses in Russia have performed well over the last year and are bullish about growth over the next five years. 92% have grown in the last 12 months (compared with 65% globally) and 22% are aiming to grow quickly and aggressively over the next five years (compared with 12% globally).
  • The key challenges to growth will be the general economic situation, price competition, attracting & retaining key staff.
  • Family businesses believe they hold some key advantages over non-family businesses including: agility/speed of decision making, motivation/values within the company and their independence.
  • But they recognise the disadvantages too: access to capital, too reliant on owner’s standpoint, lack of state support / vulnerable to the state and family politics.
  • Family Businesses in Russia believe they play a vital role in their country’s economy including: job creation and adding stability to a balanced economy.
  • They generally believe their government does not recognise the importance of family businesses and there is a feeling that more needs to be done to help family businesses including accessing finance and generally removing some of the perceived (unfair) advantages enjoyed by corporations (esp. state owned).
  • Some believe that family businesses will continue to come under pressure from the state although Russia joining the WTO may open up opportunities.
  • 57% plan to sell or float the company, compared with only 17% worldwide. 10% plan to pass the business down to the next generation, while a further 14% will pass ownership of the business down but will employ non-family management.
  • 61% of family businesses in Russia have procedures in place to deal with family member issues/conflict (lower than the global average).

Read more

Switzerland, Austria and Germany

Family business in Switzerland, Austria and Germany (DACH-countries) hold some key advantages over non family firms: They have a long term business focus, are agile, flexible and commited towards employees and customers, have specific values and drive for innovation. These characteristics are strong assets to the challenges of growing and competing at world stage. And they help adding stability to a balanced economy and job creation. However, there are some unique challenges and they ask local governments to provide help rather than obstacles.

  • 80% of family business in DACH-countries are confident about growth in the next five years.
  • Recruitment and general market conditions are the key challenges to growth. German and Austrian firms are worried about the current Euro crisis, while Swiss family business struggle with the exchange rate and the strong Swiss Francs
  • 80% of DACH-family business have businesses abroad and they predict to internalise further. Europe remains the most important region, but Asia Pacific is gaining importance.
  • Key challenges of family businesses are succession, access to finance, family conflicts and attracting qualified employees.
  • Governments should level the playing field vs. PLCs and remove privileges.

Read more

Taiwan

Family Businesses have been vital to Taiwan’s economy. These are the findings based on the interviews with 30 representative Taiwan family businesses.

  1. Family Businesses in Taiwan have performed well over the last year and are confident about growth over the next five years. 70% have grown in the last 12 months and 90% are aiming to grow over the next five years (compared with 81% globally)
  2. The key challenges to growth will be the need to innovate, the general economic situation, price competition and attracting the right skills/talent
  3. Family businesses believe they hold some key advantages over non-family businesses including: agility/speed of decision making, effective internal communication, motivation/values within the company and less bureaucracy
  4. But they recognise the disadvantages too: challenges around succession, attracting/retaining non-family staff, access to capital, ability to innovate / change direction and the difficulty of making decisions that benefit the company but not necessarily the family
  5. Family Businesses in Taiwan believe they play a vital role in their country’s economy including: job creation and adding stability to a balanced economy
  6. They are somewhat divided in opinion on whether or not their government recognises the importance of family businesses and there is a feeling that more needs to be done to help family businesses including accessing finance and generally removing some of the perceived (unfair) tax disadvantages facing family businesses
  7. Some believe that family businesses will need to adopt more corporate behaviour in order to survive and thrive in the years ahead if the next generation is not up to the task
  8. However, over half plan to pass the business down to the next generation, while a further 17% will pass ownership of the business down but will employ non-family management
  9. 83% of family businesses in Taiwan have procedures in place to deal with family member issues/conflict
  10. Read more

United Kingdom

We know that family businesses contribute significantly to the economy, and also to job creation, talent development, and innovation; and keeping the market buoyant is critical. We hope the PwC Family Business Survey provides a useful benchmarking tool for you in achieving this aim.

  • 47% of family businesses reported sales growth in the past financial year.
  • Key challenges to growth in the next five years are the economy, competition, innovation, talent and regulation.
  • Advantages of being in a family business are motivation, agility, people focused values, continuity, and a longer term view.
  • Disadvantages of being in a family business are access to capital, family politics, talent and succession.
  • Family businesses believe they play a vital role in creating jobs and a stable economy.
  • Respondents believe they may need to float, merge, or adopt more corporate behaviours to compete.
  • Family businesses believe Government should be doing more to level the playing field.
  • 46% intend to pass the business to the next generation.

Visit www.pwc.co.uk/privatebusiness to download the full UK results PDF

United States

US family enterprises remain optimistic despite very real challenges ahead. They fully recognize that to thrive in a fast-evolving business landscape and still-uncertain economy, they’ll need to out-innovate their peers and seek new avenues of growth. That requires harnessing the right blend of entrepreneurship, talent, technology, and leadership. Our survey looks at how family businesses are rising to the challenge and what they can do to improve their odds.

  • Nearly all US family businesses are confident about growth for the next five years.
  • Various headwinds remain strong, however - tough competition, still-uncertain market conditions, and the challenge of finding skilled workers being chief among them.
  • The need to continually innovate is a top long-term concern for family businesses. A knack for innovation in the next generation is seen as important to future success.
  • While 76% of US family business leaders intend to pass ownership to the next generation, one-quarter plan to enlist outside management to oversee the actually running of the company.
  • Family businesses believe they add stability to the economy and play an important role in job creation.

Read more

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How do your challenges, strengths and resilience compare to those of your peers across the world? We've got the qualitative and quantitative data from our large-scale survey of 1,952 family businesses across over 30 countries. We've used this knowledge to create a benchmarking tool that will not only help you see where you are, relative to your peers, but help you set a strategic course for where you want to go. Benchmark your company