Family businesses well placed for downturn
Article Date: Mar 02 2009
Families can weather tough times
The traits which help companies survive recession are commonly found in family businesses, according to a study from Barclays Wealth and the Economist Intelligence Unit.
Family-run businesses are less likely to thrive on risk, with 22 per cent saying the enjoyment of risk is their most important motivation compared to 30 per cent for non-family businesses.
They are also less driven by financial returns, with only 42 per cent citing making money as one of their key motivators, compared to 52 per cent of other businesses.
The study identifies the ability to take a long-term approach as a key advantage of running a family business, with 38 per cent perceiving this as the chief benefit.
Mark Kibblewhite, MD of Barclays Wealth, comments, ‘Businesses can often be forced into knee-jerk reactions when faced with a challenging and unfamiliar environment, but this can sometimes exacerbate problems.
‘A longer term view, less debt and an experienced management team are just a few of the factors which provide stability and minimise vulnerability in testing times.’
The study is based on a global survey of 2,300 individuals, 300 of whom are members of family businesses.
