First-of-its-kind research from Family Business UK and the ScaleUp Institute has identified the number, importance and regional spread of Britain’s mid-market, scaling family businesses.
According to the research, these critical family-owned companies contribute £142 billion to the economy and employ more than 900,000 people. Scaling family businesses alone generate £72 billion and support half a million jobs.
In addition, they power Britain’s regional economies with almost 70% being located outside of London and the South East with the North West, South West and East of England all having significant clusters of mid-sized, scaling family firms. You can read and download the full report by clicking below.
The report finds there are nearly 10,000 mid-market, scaling family businesses in the UK comprising:
- 8,641 mid-market
- 2,985 scaling
- 1,765 are both mid-market and scaling
Both mid-market and scaling family firms are a critical presence supporting the Government’s industrial strategy with a significant proportion (28%) in advanced manufacturing with others spread across sectors including transport, digital technologies, the creative industries, cleantech and life sciences.
These mid-market, scaling family businesses are ambitious but face significant challenges to growth
To ensure these vital family businesses are supported to overcome these challenges, Family Business UK is calling for:
- a new, shared definition of a medium-sized business – one with between 50-499 employees and turnover between £10million-£100million
- a stable tax framework that incentivises growth and investment – including the full reinstatement (with no thresholds) of Inheritance Tax reliefs – BPR & APR
- family businesses to be prioritised in regional growth plans
- policies to ensure family businesses can access the finance and talent they need to grow.
Neil Davy, CEO Family Business UK said:
“The analysis we have done together with the ScaleUp Institute casts Britain’s family business sector in a new light. Too often characterised as ‘just small businesses’ these insights show the critical importance of family businesses to the economy – particularly the mid-market, scaling firms that are delivering both jobs and prosperity, and supporting key government strategies.
“Nevertheless, these family businesses are being failed by a policy landscape that is designed for other businesses. They have become the missing middle in business policy and that must change.
“This ground-breaking research makes a clear case for how policymakers should see and embrace these critical family businesses to ensure they thrive in a diverse and growth-orientated economic landscape.”