The unprecedented, tumultuous events of the past year have presented family businesses with enormous challenges. And although many have demonstrated significant resilience amid the crisis—the rapidly changing state of the world has served as a wake-up call for family business leaders looking towards the future.
In our 10th PwC Global Family Business Survey, we reveal the current thinking—and future outlook—of 2801 family business leaders across 87 territories. Our findings show that it’s no longer enough to rely on values and legacy to propel the business forward. Tomorrow’s family business requires a new approach for lasting success—one based on accelerated digital transformation, prioritisation of sustainability goals and professional family governance.
"If family businesses want to get to the sweet spot where competence and ethics converge, it requires a change of mindset, a rethinking of their priorities and behaviours and a new definition of legacy."
Peter Englisch
Global Family Business Leader, Partner, PwC Germany
Key takeaways
The time to act is now if family businesses want to keep their legacy for future generations. Watch an overview of the key findings from the Family Business Survey 2021.
Explore the survey themes
The survey and three panel discussions with family business owners and executives, representing a mix of businesses and industries from around the world resulted in the following key themes of the report.
Family businesses demonstrated resilience amid COVID-19 and are prepared to lead the post-pandemic recovery.
Though COVID-19 ravaged many organisations, family businesses proved robust and adaptable amid the pandemic. Through a people-first approach that prioritised the well-being of their employees and communities, 80% enabled staff to work from home and 25% repurposed production to meet pandemic-related demand. Only one-third of family businesses had to cut dividends, and only 20% needed access to extra capital. Such resilience also extends into the outlook for the future, as 80% of family businesses plan to diversify or expand into new products or markets, and 86% believe they will be back to pre-pandemic growth rates by 2022.
For more insights, as well as peer recommendations and tips on how to get started on them, download the full report.
It’s time for family businesses to turn trust into impact and implement an ESG agenda.
The high level of trust commanded by family businesses positions them well to lead on sustainability. But intentions are not enough. Action—and a mindset shift—are needed. Though 55% of family businesses are willing to lead on sustainability, only 37% have a strategy. And although 80% give back through social responsibility activity, only 49% say sustainability is at the heart of everything they do. As pressure increases for businesses to contribute to a better environment and society, tomorrow’s family businesses must step forward, look beyond philanthropy and embed ESG into operating models—and take concrete steps towards goals like achieving net zero in order to avoid punishment by consumers and regulators, and secure long-term stability.
For more insights, as well as peer recommendations and tips on how to get started on them, download the full report.
Most family businesses do not have the digital tools and capabilities needed for a rapidly changing world.
The massive shift to digital services and work-from-home models as a result of COVID-19 has firmly spotlighted the importance of strong digital capabilities. Though digital has been on the agenda for family businesses for years (80% told us they were concerned about technology in our 2018 survey), progress has been slow. Only 39% say their digital capabilities are strong, and only 19% say that their digital journey is complete. How can family business leaders boost their digital capabilities for the future? One resource to leverage is the next generation. Our 2019 NextGen Survey found that younger family members see technology as one of the three most important drivers of change, and 64% felt this was the area where they could add value.
For more insights, as well as peer recommendations and tips on how to get started on them, download the full report.
Family businesses can greatly benefit from a professional, clear structure for conflict resolution.
Relationships are what make a family business strong—but when emotionally charged conflicts arise, they can also be a hindrance to success. Disagreements are to be expected. Only 58% say that all family members share similar views about the company’s direction. So what can family business leaders do when tensions rise? When sensitive topics like succession are on the table, a family business can benefit from approaching internal governance with the same professionalism that’s applied to business strategy and operations. But for many family businesses, there is still progress to be made. Only 28% have family protocols, and just 23% have rules for family employment in place, and even if 77% indicated that they have to deal with conflicts, just 13% have a conflict resolution established.
For more insights, as well as peer recommendations and tips on how to get started on them, download the full report.
Explore the survey insights
PwC’s Global Family Business Survey 2021
Contact us
Foong Mei Lin
Partner, Assurance and Asset and Wealth Management Leader, PwC Malaysia
Tel: +(60) 3 2173 0840
