Dispelling Myths: Why Britain’s Family Businesses Deserve Recognition

Family businesses are the backbone of economies across the globe, and the UK is no exception. With more than five million family firms employing over 14 million people, they form the economic and social engine of communities nationwide. Yet despite their undeniable importance, misconceptions persist. Here, we unpack some of the most common myths—and shine a light on the reality behind Britain’s family enterprises.

MYTH 1: Family Businesses Are Small Businesses

While many family firms across the UK are indeed small, and play a vital role in their local economies, the assumption that all family businesses are modest in size is simply incorrect. A growing awareness of the sector has highlighted a number of major family-owned companies operating at significant scale.

Consider Wates, one of the country’s largest construction groups, or automotive giant Arnold Clark. Add to that David Nieper, Weston’s Cider, Baxters, Walkers Shortbread, Shepherd Neame, Arco and GAP Group, and it quickly becomes clear that the sector includes some substantial players.

Size, therefore, is no barrier to being a family firm.

MYTH 2: Family Businesses Are Not Household Names

Far from being anonymous, many family businesses are instantly recognisable—although their family roots may not be widely known.

On the global stage, brands such as LEGO, SC Johnson, Ford, Walmart, Samsung and IKEA all have strong family heritage. In the UK, cherished names such as The Goring Hotel, Kinloch Anderson, William Jackson Food Group, Taylors of Harrogate, Fortnum & Mason, Furniture Village, William Grant and Euro Garages all share similar foundations.

Often, it is only when these names are listed together that people recognise just how many iconic brands are, in fact, family-run.

MYTH 3: Family Businesses Are Not Survivors

The belief that family businesses rarely make it past the third generation continues to circulate, but recent studies are challenging this narrative. In truth, many family firms have not only survived but thrived over centuries.

Take RJ Balson & Sons, Britain’s oldest family firm, established in 1515. Other longstanding examples include James Lock & Co. (the oldest hatmaker, 1676), C. Hoare & Co. (the oldest bank, 1672), and CPJ Field & Co. (the oldest funeral directors, 1690). These businesses are proof that with innovation, adaptability and strong stewardship, family firms can endure across the generations.

MYTH 4: Family Businesses Are Not Significant Employers

A glance at some of the nation’s largest family-owned employers quickly dispels this myth. Companies such as The Swire Group, JCB, NG Bailey, Warburtons, Wates, Shepherd Neame, Arnold Clark, Furniture Village, Arco and GAP Group each sustain substantial workforces at local, regional and national levels.

Collectively, family firms make up a major part of the UK’s employment landscape—and their importance as employers cannot be overstated.

Family businesses stretch the length and breadth of the UK. They are the backbone of the economy, the bedrock of communities, and often leaders in entrepreneurial innovation. Many are governed with long-term vision, ensuring their success for generations to come. They contribute not only to national prosperity but also compete confidently on the global stage.

While not every family firm is a multinational brand, many lead their sectors and continue to pioneer new practices to ensure future sustainability and growth.

The sector deserves recognition for its steadfast contribution—day after day, year after year.

Family businesses truly are the backbone of the UK economy and help put the 'great' in Great Britain.