Family Business Growth Expectations Dip And Leadership Transition Looms

The results of the 2025 Family Business Survey, compiled by Family Business United (FBU) and conducted in July 2025, reveal that confidence and growth expectations within the UK family business sector have weakened, as firms also prepare for a major generational handover of leadership.

According to the latest findings, only 41% of family business leaders expect their businesses to grow over the next 12 months, reflecting the challenges posed by the current political and economic climate. This cautious outlook aligns with wider concerns expressed across the sector in this year’s survey, which highlighted the pressures of regulation, taxation, and market uncertainty on business performance and planning.

The survey also indicates a significant period of transition ahead for the family business community. 43% of respondents are planning a leadership transition within the next five years, as the older generation of leaders begin to step back and retire from their day-to-day roles. Encouragingly, 51% of businesses expect the next leader to be a family member, underlining the continued importance of family values and succession within the sector.

For many, the sense of continuity remains strong. 82% of current leaders see themselves primarily as custodians or stewards of their business, focused on protecting the family legacy and ensuring the business is passed to future generations in a stronger position than they inherited it.

However, achieving that goal is becoming increasingly difficult.

Paul Andrews, Founder and CEO of Family Business United, commented: “Family businesses are built on long-term vision, purpose and commitment — qualities that have enabled them to weather many storms over the years. But this year’s findings show that optimism is under pressure, and many leaders are finding it harder to plan for the future with confidence.”

“Succession is a defining moment for any family firm, and it’s encouraging to see so many preparing for leadership transition and seeking to keep the business within the family. However, the prevailing political and economic environment — with rising costs, shifting policies and market uncertainty — is making that stewardship role more challenging than ever."

"The determination to pass on a stronger, more sustainable business remains, but the path to doing so is increasingly complex.”

“Family firms remain at the heart of the UK economy, and supporting them through this next chapter is crucial."

"Policymakers and their advisers need to recognise the long-term value they bring — not just in terms of employment and economic output, but also in terms of investment, community engagement, values, and sense of purpose.”

The 2025 Family Business Survey provides an annual insight into the attitudes, priorities and challenges facing family firms across the UK and beyond, serving as a barometer of the health and sentiment of this vital sector.