Is the Government doing enough for Family Owned Businesses?

Not according to the Federation of Small Businesses (FSB) whose recent survey claims measures like the cut in VAT, pledges on payment practices and bank lending guarantees have done little to improve the situation facing small companies.

Half of the 4,000 respondents in the FSB survey had experienced a fall in trade over the past two months, with getting paid still one of the biggest complaints.

With this, and a new study from the Confederation of British Industry showing firms expecting the financial environment to worsen over the next three months, are things really bleak for family owned businesses?

Certainly it’s tough out there – and, unless you keep control of things like cash flow, margins and bad debt, you could struggle - but, in my experience, family owned businesses can often be more robust in a tough economic environment that others relying on no familial ties.

Family owned businesses are the backbone of our economy. Apparently two-thirds of businesses describe themselves as family owned and, whilst that includes household names like Sainsbury’s, Ikea and Fiat, it also includes many much more modest concerns.

In my experience, in a family owned business when the going gets tough the family knuckles down and works even harder.

Family owned businesses are held together by financial and emotional ties. Maybe if other businesses had these dual concerns, things could be different for them too.

If you run a family owned business, how are you getting on in this current economic downturn? What’s your biggest concern and do you have any tips for other business people?

Working with family owned businesses on a day-to-day basis, we are keen to share best practice and ideas where we can.

Gary Cousins
Family owned business solicitor

For free advice on this topic please call us on 0845 003 5639.