Europe’s family businesses are confident about the future but must become more agile, innovate faster and attract top talent to remain competitive and continue to grow.
These are among the key findings of the latest European Family Business Barometer which surveyed 1,576 family business executives in 26 countries across Europe, published by KPMG Enterprise and European Family Business (EFB).
And according to KPMG Enterprise Partner Bill Noye, who has advised family businesses for over 30 years, these findings echo many concerns of the Australian family business sector.
According to research into family business conducted by KPMG Enterprise in 2018, the top financial objectives of family businesses were the same as Europe’s in term of sales growth, profitability and profit margins, and return on investment.
Bill Noye says: “Families with a shared understanding of the future of the business and its future growth and who build strong communication frameworks both within the family and the business, are more likely to succeed into the long-term.
“It is fundamental for families to have a shared understanding on leadership and ownership strategies and transition plans, or people may lose their connection to the business. Focusing on training, mentoring and developing the next generation to be prepared for leadership is absolutely critical to overcome that concerning lag in self-confidence.
“Finally, governance frameworks for the future must be put in place to ensure the interests of the family and the business are secure and understood by all involved.”
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The European Family Business Barometer is based on the responses of an online survey from over 1,500 questionnaires which were received from family businesses across 26 European countries from 7 May to 7 July 2018.
KPMG Enterprise is a division of KPMG Australia whose prime objective is to help the mid-market fulfil its business objectives and ambitions. KPMG Enterprise works with established entrepreneurs, business owners, family businesses, not-for-profits, local government, startups and fast-growing, dynamic companies to build great organisations. It offers an extensive range of audit, tax, accounting and advisory services to help clients through every stage of their life cycle, whether starting, growing or exiting their businesses.