Do Governments & Policy Makers Do Enough To Support Family Firms?

Governments and policy makers play a crucial role in fostering the growth and sustainability of family businesses, recognising their significant contribution to economies worldwide. Understanding the unique dynamics of family businesses is imperative for policy makers, as these enterprises often operate on distinctive principles, combining familial ties with business interests.

Supporting family businesses goes beyond traditional economic policies; it involves acknowledging the intricate interplay of family dynamics, succession planning, and long-term sustainability, and the very nature of family firms and often their underlying desire to be stewards of these businesses for generations to come. By comprehending the family business model, governments can tailor policies that address specific challenges, encourage generational continuity, and create an environment conducive to the flourishing of these enterprises, ultimately contributing to overall economic resilience and community development.

We asked our Global Family Business Think Tank Panel if they thought governments and policy makers do enough to support the family business sector.

The results:

Do Governments & Policy Makers Do Enough To Support Family Firms?

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• Yes - 6%
• No - 83%
• Don't Know - 11%

Clearly, more needs to be done in this area to unite the world of family business with the world of policy making. Some countries are further down the road than others but the findings from the panel are clear – this area is very much a work in progress and many think the journey has yet to really begin.

THE THOUGHTS OF OUR ‘THINK TANK’ REPRESENTATIVES:

“I do not think that governments do enough to support family businesses. Firstly, there is a lack of tailored policies that address the unique challenges faced by family businesses. Secondly, access to funding and resources often seems disproportionately favouring larger organisations. Lastly, navigating regulatory complexities remains a burden for many family-owned enterprises, indicating a need for more streamlined support.”

Jeremy Stevenson Managing Partner, iBridge Global Partners

“We need to think beyond taxation. Family businesses need support for the management of their digital and sustainability journey. Knowledge transfer, less bureaucracy, access to funding and innovation centres need to be the focus of government support.” Peter Englisch PwC Global Family Business Leader and IMD Executive In Residence

“The level of government support for the family business sector varies across different regions and countries. While some governments have implemented policies and initiatives to specifically support family businesses, others may not have dedicated measures in place. In many cases, family businesses face unique challenges, such as succession planning, access to finance and regulatory compliance. Therefore, tailored support from governments and policy makers can play a crucial role in fostering the growth and sustainability of family businesses.”

“Collaborative efforts between family business associations, policy makers and government agencies can lead to the development of more effective and targeted support mechanisms for the family business sector. Whilst there are instances of government support for family businesses, ongoing dialogue and collaboration between family business stakeholders and policy makers is essential to ensure that the sector receives the necessary support to thrive and contribute to economic growth and development opportunities.”

Tsitsi Mutendi Co-Founder Nhaka Legacy and African Family Firms

“In general, governments do not allocate enough resources to encourage the sustainability and continuity of family businesses. Family businesses should work closely with governments to advocate changes that will be of mutual benefit to a country, its citizens and the family businesses which represent the largest percentage of companies worldwide.” Lina Chehab Shareholder & Chief Governance Officer, Chehab Brothers SAL “I believe that family business have not yet been identified as a distinct sector in the family business community, and as a result, policies are not specifically designed to acknowledge their complexities.” Sunil Soni Family Business Advisor, IFBN Consultants

“Some governments are taking advanced steps to identify and provide platforms for managing some family business challenges. However, it is still the exception.”

Adib Rashid Executive Director, Dubai Centre For Family Business

Find out more:

These results were part of the 2024 Global Family Business Think Tank Report that was published in Spring 2024. Check out the full findings in the report here