A detailed new report has revealed the full extent of the massive contribution that family businesses make to the UK’s economy.
According the latest UK Family Business Sector Report, produced by Oxford Economics for the Institute for Family Business (IFB), they are responsible for a quarter of the nation’s GDP.
And that contribution has risen by £100 billion since 2010 to reach today’s impressive figure of £519bn. Over the same time the number of family-run enterprises has also grown by more than a million.
Family firms now account 88 per cent of all private enterprises in the UK, generating more than 12.2 million jobs – up by 2.3 million since 2010.
And that is not all. Family firms now turn over £1.4 trillion annually, up 7.2 per cent since 2010 – family business turnover has grown by more than that of non-family businesses since 2010.
They also contributed £149 billion in taxes in 2016 – more than the annual NHS budget.
These are large figures. And as Elizabeth Bagger, the Institute for Family Business (IFB) executive director, says: “Family businesses are the backbone of the UK economy – but their incredible contribution is still often underestimated.”
To ensure family businesses continue to flourish, she and her organisation are now calling on the government to support them with policies which allow them to plan and invest for the future.
Family businesses can be found in every sector today – from sibling start-ups to multi-generational international brands. And here in the North West WNJ is working closely with some fantastic success stories.
As this latest report underlines, family firms are a resilient and innovative part of Britain’s economic makeup, with a strong history of overcoming adversity and emerging stronger.
The fact that the tax contribution family businesses make each year is more than the annual NHS budget demonstrates just how growth in the sector benefits the economy, consumers, the exchequer and the millions who work in them.
Please contact me on 01772 430000 to discuss any issues relating to family business.