Latest Figures Reveal The Family Business Impact On The UK Economy

Family businesses remain the cornerstone of the UK economy, contributing a staggering £985 billion in Gross Value Added (GVA) in 2023 and employing 15.8 million people, according to a new report, 'The State of the Nation: the UK Family Business Sector in 2023.'

The report, produced by the Family Business Research Foundation (FBRF) in collaboration with the Centre for Economics and Business Research (Cebr), provides a comprehensive and up-to-date analysis of the Family Business sector in the UK.

The findings underscore the importance of family firms, which represent 93.2 per cent of all UK private sector businesses and span industries including construction, retail, professional services, and agriculture. These businesses, often celebrated for their resilience and long-term focus, are revealed to be pivotal in driving regional and national economic growth.

Key Highlights from the Report:

• Economic contribution: Family businesses generated £2.8 trillion in turnover in 2023, almost half of the UK private sector total.

• Employment: With 57 per cent of private sector employment, family firms are significant job creators, particularly in micro and small enterprises.

• Family businesses are particularly prevalent in Wales and Northern Ireland, where they account for over 70 per cent of private sector turnover.

• Tax revenue: Family businesses contributed £422 billion in taxes, reinforcing their critical role in sustaining public services and infrastructure.

• The wholesale, retail, and construction sectors were the largest contributors to turnover and employment among family firms.

Sector Resilience and Opportunities

The report highlights the adaptability of family businesses in navigating challenges such as the post-pandemic recovery and Brexit, highlighting their ability to sustain operations and protect jobs.

Sir Michael Bibby, Chairman of the Family Business Research Foundation, commented:

"This report demonstrates the extraordinary contributions of family businesses, not only as economic drivers but as pillars of their local communities."

"Their resilience and long-term vision make them vital to the UK’s future prosperity."

There is currently a great deal of interest and commentary on the importance of family businesses to the UK. There is more detailed work to be undertaken to look at the impact of specific measures on growth and tax contributions; but this report provides essential material and background for those debates.”

Why It Matters

The latest Family Business Economic Sector Report from the FBRF provides actionable insights for policymakers, advisers, and trade organisations seeking to understand and support the sector. It underscores the urgent need to include family firms in key economic strategies to ensure sustained growth and innovation.

Download the Report

The full State of the Nation report and an infographic summary is available for free download here: State of the Nation: UK Family Business Sector in 2023