The Ten Biggest Issues Facing Family Businesses Around The World Today

Family businesses are the backbone of the global economy. They employ more people, sustain more communities, and contribute more to national prosperity than many politicians and policymakers ever fully acknowledge. But right now, across every continent and every sector, family firms are navigating a set of challenges that are more complex, more interconnected, and more demanding than anything the sector has faced in living memory.

At Family Business United, we've been listening to family business owners across the UK and beyond, and the themes that keep coming up are strikingly consistent. Here, we set out the ten issues that are defining the family business agenda in 2026 — and why they matter.

1. Succession Planning

Ask any adviser who works with family businesses what keeps their clients awake at night, and succession will almost always come up first. Who takes over, when, and how are the key questions that touch on family relationships, personal identity, and the long-term survival of everything the founding generation has built.

Too many family businesses still don't have a formal succession plan in place. They mean to get around to it, but the day-to-day demands of running the business always seem to take priority. The problem is that by the time a transition becomes urgent, it's already very difficult to manage well.

"Succession is never just a business problem — it's a family one too," says Paul Andrews, Founder and CEO of Family Business United.

"The businesses that handle it well are the ones that start the conversation early, involve the right people, and treat it as a process rather than an event. It takes time, it takes honesty, and it takes a genuine commitment to the long-term future of the business over the short-term comfort of avoiding a difficult conversation."

2. Geopolitical Uncertainty & Economic Volatility

The world has changed dramatically in recent years, and family businesses have felt every tremor. Inflationary pressures, supply chain disruption, shifting trade policies and geopolitical instability have combined to create an operating environment that is genuinely unpredictable. According to PwC's 2025 Global Family Business Survey, economic volatility impacted nearly seven in ten family businesses in the US alone, with geopolitical risk close behind.

For family firms, which often have deep roots in specific communities, sectors or supply chains, this kind of volatility is particularly hard to absorb. The long-term orientation that makes family businesses so admirable can also make them slower to pivot when circumstances demand it.

3. Digital Transformation & AI

Digital transformation is no longer a future challenge — it is a present one. Artificial intelligence, automation, and data-driven decision-making are reshaping every industry, and family businesses that fail to engage with these changes risk being left behind by more agile competitors.

The good news is that many family firms are embracing the opportunity. Research from Deloitte shows that 40 per cent of family businesses now cite investment in technology — particularly AI — as their top growth strategy. The challenge is doing so in a way that preserves what makes a family business special.

"Technology should be an enabler, not a threat to identity," says Paul Andrews.

"The family businesses I admire most are those that are using digital tools to serve their customers better and to free up their people to focus on the things that really matter — relationships, quality, and doing right by the communities they operate in. That's what family business has always been about, and technology done well should reinforce that, not undermine it."

4. Governance & Decision-Making

As family businesses grow and pass through generations, the informal decision-making structures that worked perfectly well in the early years can start to creak. More family members, more branches, more complexity — and often, no clear framework for how decisions get made or disputes get resolved.

Good governance isn't about bureaucracy. It's about clarity. Businesses with formal boards, family councils, and clearly articulated constitutions are consistently better placed to handle the challenges that come their way — whether that's a disagreement between siblings, an unexpected leadership transition, or a major strategic decision.

5. Engaging & Developing the Next Generation

The next generation of family business leaders is arriving with different expectations, different values, and different ideas about what good leadership looks like. That's not a problem — it's an opportunity. But only if the current generation creates the space for them to genuinely contribute.

Too often, next-gens are brought into the business without a clear role, without proper development, and without any real authority. They're expected to prove themselves, but they're not always given the tools or the trust to do so. Getting this right is one of the most important investments a family business can make.

"The next generation are not just the future of family business — they're a real asset right now," says Paul Andrews.

"The families that are thriving are the ones that bring their younger members in properly, listen to what they have to say, and create a genuine pathway to leadership. It takes confidence from the older generation to let go a little, but the rewards for doing so are enormous."

6. Talent Attraction & Retention

Family businesses have long prided themselves on being great places to work — loyal, values-driven, with a genuine sense of belonging. And for many, that reputation is entirely deserved. But the talent market has changed, and family firms are now competing for people against remote-first employers, global businesses, and organisations with dedicated HR departments and compelling employee value propositions.

Younger professionals want flexibility, clear career development, and a sense of purpose in their work. Family businesses can offer all of these things — but they need to articulate them better, and sometimes formalise them more, than they have in the past.

7. Sustainability & ESG

Sustainability has moved from the margins of the business agenda firmly to the centre. Customers, employees, investors, and regulators are all asking harder questions about environmental impact, social responsibility, and corporate governance — and family businesses are not exempt from that scrutiny.

In many ways, family firms are well placed to lead here. Their long-term orientation, their community roots, and their values-led culture make sustainability a natural fit. But good intentions need to be backed by action, reporting, and accountability.

"Family businesses have always cared about doing the right thing — that's in their DNA," says Paul Andrews.

"Sustainability isn't a new concept for firms that have been thinking in generations rather than quarters. But the expectations have risen, and the need to demonstrate that commitment — not just feel it — has never been greater."

8. Reputation & Trust

Family businesses enjoy a significant reputational advantage over their corporate counterparts. Consumers trust them more, employees tend to be more loyal, and communities value their presence. But that trust is not unconditional, and it can be damaged — sometimes quickly and sometimes permanently.

In an age of social media, instant scrutiny and heightened stakeholder expectations, family businesses need to be thoughtful about how they communicate, how they behave, and how they engage with the communities around them. A reputation built over generations can be undermined in weeks if it isn't actively tended to.

9. Cybersecurity

As family businesses invest in digital infrastructure, their exposure to cyber risk grows. Yet many, particularly smaller and mid-sized firms, still underestimate the threat, or assume that cybercriminals only target large corporations. The reality is very different. Family businesses are attractive targets precisely because they often hold valuable data and assets without the same level of security infrastructure as their larger peers.

Cybersecurity needs to be a board-level conversation in every family business, not something that sits solely with the IT department, or worse, is assumed to be someone else's problem.

10. Wealth Transfer & Taxation

The so-called Great Wealth Transfer is well under way, with trillions of pounds, dollars and euros moving between generations over the coming decade. For family businesses, this means navigating inheritance tax, ownership structures, estate planning, and the complex interplay between business succession and personal wealth — often across multiple jurisdictions.

Get this right, and the business survives and flourishes. Get it wrong, and a business that took generations to build can be forced into a sale, a restructure, or worse, simply because the tax planning wasn't in place.

"The wealth transfer challenge is one of the most significant the sector has ever faced," says Paul Andrews.

"There's a huge amount at stake — not just for individual families, but for the economy as a whole. Family businesses need proper advice, they need to plan early, and the government needs to understand what's at risk if the tax environment makes it too difficult for these businesses to pass through the generations intact."

Looking Ahead

None of these challenges is insurmountable. Family businesses have survived recessions, wars, technological revolutions, and generational upheaval before. Their resilience is extraordinary, and their contribution to the world economy — already standing at an estimated $21 trillion in collective revenue — continues to grow.

But meeting the challenges of 2026 and beyond will require family firms to be more deliberate, more open, and more willing to seek advice than perhaps they have been in the past. The good news is that the community, the resources, and the support are there for those who want them.

Family Business United will continue to champion the sector every step of the way.