Keeping It In The Family In Businesses Across The Nation

From butchers to breweries, farms to fashion houses, family businesses are the backbone of the British economy — often quietly so. They may not always grab headlines, but they are everywhere, woven into the fabric of daily life. And as the world stumbles through economic uncertainty, there’s growing recognition that these often-overlooked enterprises may hold the key to a more sustainable, values-driven future.

Despite their low profile, family firms account for two-thirds of private sector employment in the UK and contribute more than £650 billion to the economy. They are resilient, community-minded, and frequently driven by a long-term vision that extends far beyond quarterly profits.

So why don’t we hear more about them?

“Family businesses are humble by nature,” says Paul Andrews, CEO and founder of Family Business United, a leading voice for the sector. “They’re more focused on getting the job done than shouting about it. But behind closed doors, these businesses are delivering real value — to their employees, their communities, and the wider economy.”

Beyond the Stereotypes

The idea of a family-run firm often conjures up dusty images of corner shops and crumbling dynasties. But the reality is far more dynamic. British family businesses span every sector, from high-tech manufacturers to cutting-edge food brands, and many are scaling globally without sacrificing their values.

For Andrews, one of the sector’s great strengths is its diversity. “There’s no single blueprint,” he says.

“Some are small, some huge. Some are on the third generation, some just starting out. But what they all share is a deep-rooted commitment — to legacy, to stewardship, and to doing business in a way that reflects their family’s values.”

It’s a model that increasingly resonates in a world weary of corporate spin. Trust, after all, is in short supply. Yet studies consistently show that family firms enjoy higher levels of consumer trust — perhaps because their names, and reputations, are literally on the line.

The Long View

Unlike many shareholder-driven companies, family businesses are not in a rush. Their decision-making is often slower, more deliberate — but also more enduring. This long-termism plays out in everything from investment strategy to recruitment and environmental responsibility.

Andrews sees this as a vital counterbalance to short-term capitalism. “Family firms aren’t just chasing the next quarter’s results,” he explains. “They’re thinking about the next generation. That fundamentally changes how they approach risk, growth, and responsibility.”

That mindset became especially apparent during the pandemic. While many large corporations turned to mass layoffs, furloughs and closures, family businesses frequently went to great lengths to protect their staff — even at significant personal cost. For many, their workforce was not just a payroll, but an extended family.

The Challenges of Blood and Business

Still, running a family business isn’t all Sunday roasts and seamless succession. It comes with unique challenges — from navigating family dynamics to managing generational change. Disputes can turn personal. Leadership transitions can stall. And without outside perspectives, innovation can lag.

Succession remains the biggest hurdle. While 85% of family firms want to pass the business on, fewer than a third make it to the second generation, and only a fraction survive into the third.

“Succession isn’t just about handing over the keys,” Andrews says. “It’s about planning, mentoring, and making space for the next generation to lead in their own way. Too often it’s left too late.”

Yet when done well, intergenerational leadership can be a powerful asset — blending the wisdom of experience with the energy of new ideas. Many of the UK’s most successful family firms are led by young inheritors who bring digital savvy and global outlooks, while maintaining the ethos their parents and grandparents built.

Community at the Core

For many family-run firms, business is deeply personal. That shows in their community ties — sponsoring local teams, supporting schools, offering apprenticeships. It’s often less about PR and more about pride in place.

“These businesses are rooted,” says Andrews. “They’re not footloose multinationals. They care about the towns they’re in because they live there too.”

It’s a reminder that in a time of global disconnection and economic fragility, the most enduring businesses may be those that are closest to home — literally and figuratively.

Looking Ahead

Family businesses may not be chasing headlines, but they are quietly building the future — with purpose, patience, and people at the centre. As the UK economy shifts towards sustainability, inclusion, and resilience, their example is becoming increasingly relevant.

For Andrews, the message is clear. “It’s time we stopped seeing family businesses as old-fashioned or small-time. They’re innovative, adaptable, and more committed than ever to doing business the right way. We ignore them at our peril.”

So next time you pick up a pint, place an order online, or visit a local bakery, there’s a good chance you’re supporting a family business. They may not always shout the loudest, but they’re still standing — and in a world that feels increasingly uncertain, that kind of quiet strength is something worth celebrating.