A study of family business owners reveals that intergenerational collaboration, loyalty, and trust are vital ingredients for success, despite challenges like rising costs and long working hours.
Family-run businesses say they need four relatives on average – spanning across different age groups – to thrive and survive. A poll of nearly 1,200 family business owners found 82% believe intergenerational collaboration is essential for growth. Notable advantages of working with family members include loyalty, trust, and emotional support.
Older generations are valued for their work ethic, industry knowledge, and mentoring skills, while younger family members are relied on for their social media and digital marketing expertise, tech-savviness and innovative ideas. However, challenges persist as over half of respondents cite energy costs as their greatest financial obstacle, followed by rising running costs.
Four in ten, are dealing with the rising cost of living and over a third are facing increasing supplier costs. While another 18% cite more competition in their market and 85% highlight long hours and lack of time to get everything done as further challenges.
Entrepreneur and Dragons’ Den investor Deborah Meaden, who has partnered with Smart Energy GB, the organisation behind the research, highlighted the vital role family-run businesses play in the UK economy, stressing they are the ‘backbone of the UK economy’.
To help businesses cut back on costs, Meaden suggests one of the simple but key efficient ways is by installing a smart meter which could help businesses identify areas for saving.
She said: “These types of business have stood the test of time, and I believe they will continue to thrive in the future, adapting to new challenges while staying rooted in their family values.”
When looking to the future, succession planning is a key focus for 26% of family business owners, with an overwhelming 85% confident their businesses will remain in the family. Eighty-two percent hope younger family members will take up leadership roles, while only 7% expect to close or sell their businesses outside the family.
Gianluca Capilungo, co-owner of Capilungo café, London, said: “We learnt a lot from our uncle in Italy about how to run a successful business which has been invaluable especially as, like many businesses, we have experienced a lot of challenges since we opened.
“Rising costs have been an issue as pretty much everything has gone up, from produce to energy. Getting a smart meter was an easy thing for us to do, as it has helped us to manage our energy use and budget.
“We are invested in the business’s long-term success and making it financially secure, so we can leave it to the next generation and ensure a piece of our family heritage stays in the local community.”
The research also found that sustainability is a priority for 85% of family business owners, with a third focusing on recycling and 29% prioritising energy management. Other efforts include reducing packaging waste (26%), investing in energy-efficient equipment (22%), and using local suppliers (21%).
Victoria Bacon, a Director at Smart Energy GB, said: “We know from our research that business owners are dealing with financial strain, with running costs, including energy, high up that list.
“A smart meter measures energy usage in near real-time, which means you only pay for the energy you use and no longer receive estimated bills, which can help a business with managing its cashflow.
“Family businesses clearly see the positives of generations working together and being able to play to everyone’s individual strengths. It’s good to see that the vast majority of owners are optimistic about the future prospects for their businesses.”
