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Report looks at importance of family firms
3:15pm Friday 15th March 2013 in Business
A NEW report by Credit Suisse on the importance of family businesses to the UK economy has been welcomed.
David Dickson, senior partner of Garbutt & Elliott who have offices in York and Leeds, endorsed the report, which revealed that family firms have proved more robust thanotherprivatebusinesses inthe current economic climate.
The report said 60pc of family firms reported growth of five per cent or more during the last financial year.
Mr Dickson said: Well-run family businesses are the lifeblood of the British economy, providing clear vision, stability and continuity.Theyare oftenthemodel of good business practice, based on long-term objectives rather than short-term gain.
They have weathered the recession fairly well, mainly because most didn’t take on debt during the good times. Without family businesses, the economy would be in a much worse state than it is currently.
Meanwhile, a report by Oxford Economics showed family firms generate revenues of £1.1 trillion a year, and provide 9.2 million jobs in the UK – two out of every five private sector jobs or almost one in three of all jobs.
Mr Dickson said: Research has revealed 75pc of all businesses are family businesses, yet relatively few survive in the longer term. Research suggests only 15pc survive to the third generation.