Family Power Pays: 82% of family businesses believe working with relatives is key to growth

·       Today’s family business owners say Gen Z and Millennials bring tech-savviness (45%) and innovation (44%)

·       With older generations bringing stability (48%) and industry knowledge (47%)

·       85% are confident their businesses will remain in the family in the long-term

Family-run businesses owners across the UK believe their multigenerational make-up, and the differing skill set each generation brings, is key to growth (82%).

New research of over 1,000 family run business owners showed Gen Z and Millennials are most relied on to contribute social media and digital marketing expertise (49%), tech-savviness (45%) and innovation (44%), whilst the most common essential qualities the older generations bring to their businesses includes stability and reliability (48%), industry expertise (47%) and mentoring (44%).

However, rising costs remain a concern for many.  Half of business owners polled cited energy costs as a one of the biggest financial challenges they face (¹), alongside rising running costs (²) and, for two fifths, contending with the cost of living (39%).

Entrepreneur and Dragons' Den investor, Deborah Meaden, cut her teeth in her family's amusement arcade business and knows firsthand the unique challenges, and rewards, that come with running a family enterprise.

Deborah Meaden said: “Family-run businesses have always been the backbone of the UK economy, providing stability, innovation, and a sense of community across generations.

“However, increased costs are a challenge, be it supplier costs or running costs such as energy. Something owners can do to help them to manage their energy usage and costs is to get a smart meter installed which can also help them identify where they might make some cost savings.”

“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.”

Among those leading the way is Capilungo, a family-run restaurant in London.

Gianluca Capilungo, co-owner of Capilungo restaurant, 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, commissioned by Smart Energy GB, also showed that when it comes to the future, more than eight in 10 (82%) owners believe younger generations will take over the family business.  Only seven per cent of those polled said they foresee their business closing, or being sold outside the family, with more than one in five owners (26%) saying they are already dedicating time to succession planning.

This long-term mindset reflects the pride many family business owners feel in what they’ve built, with 40% saying they are proudest of their reputation, while over a third (36%) highlight keeping the business in the family. Many also call out how their family works as a team (36%) and the role their business plays in their local communities (26%).

Family-run businesses are also embracing being more eco-friendly, with 85% agreeing that sustainable practices must be integrated into their business operations.  A third of these business owners say they are prioritising recycling, with 29% focusing on energy management.

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.”