Mid-market companies remained the growth engine of the UK private sector economy in September, according to the latest NatWest UK Business Growth Tracker data. The Tracker – which surveyed mid-market businesses operating in the manufacturing and services sectors – fell from August’s 13-month high of 56.4 to 51.6 in September. A modest upturn in mid-market business activity contrasted with stalling output across the UK private sector as a whole (50.1). While some mid-market firms mentioned that a tentative pick-up in market conditions and new customer wins had supported growth, others noted subdued business investment and soft consumer demand as limiting factors. Mid-market growth continued to be centred on the services economy (index: 52.6), although the expansion here was the weakest in four months and only modest overall. Manufacturing output meanwhile fell at a solid pace that was the quickest in ten months (index: 46.4). Although small and medium-sized enterprises (SMEs) continued to face a challenging business environment in September, the decline in new orders was the least marked seen across 2025 so far. The NatWest SME Business Activity Index – which surveyed SMEs in the construction, manufacturing and service sectors – fell slightly from 47.1 in August to 46.9 in September. SMEs in the construction and manufacturing sectors indicated the sharpest declines in output volumes during September, while service providers signalled only a moderate pace of contraction. Sebastian Burnside, NatWest’s Chief Economist, said: “UK business confidence has been on a rollercoaster ride over the last three months, but mid-market firms rounded out the quarter in a solid position." "With so much changing on both domestic and international fronts, it’s no surprise to see activity vary substantially from month to month. But it’s encouraging to see businesses reporting signs of cost pressures starting to ease, hopefully setting the scene for stronger growth into 2026.” Andy Gray, Managing Director of Commercial Mid-Market at NatWest said: “The resilience and adaptability of the UK’s mid-market firms is clearly demonstrated, as they continue to drive growth even as broader market conditions remain mixed." “While challenges persist, particularly for SMEs, it’s encouraging to see that mid-market businesses are showing elevated growth expectations and responding positively to easing cost pressures. At NatWest, we remain committed to supporting businesses as they navigate the evolving economic landscape and seize new opportunities for expansion.” Mid-market companies record marginal drop in new business Total new business placed at small and medium-size firms decreased for the tenth successive month in September, but to the least marked extent since December 2024. Across the mid-market, the overall volume of new work fell in September, marking the second reduction in three months. The contraction was only slight and a reversal on August's solid upturn. Employment falls more prominently across the mid-market than at SMEs Employment numbers at SMEs decreased for the twelfth consecutive month in September. However, the degree of job losses remained less marked than across the UK private sector as a whole. The level of employment across the mid-market economy was solid and marked the sixth reduction in successive months in September. Cost pressures soften for businesses of all sizes Cost burdens faced by mid-market businesses continued to rise sharply at the end of the third quarter. That said, the overall rate of cost inflation fell to its lowest since November 2024 and was below the post-pandemic average. At SMEs, overall cost inflation was the second-lowest since December 2024, with construction, manufacturing and service providers all recording slower rates of cost inflation than in the first half of the year. Optimism fades, but remains firmly in positive territory SMEs remained confident about their own business prospects for the year ahead, although optimism levels slipped from August's 10-month high. All three sub-sectors saw confidence weaken in September. Mid-market companies were also generally upbeat in September. Although down from August's recent high, the Future Activity Index recovered back above its long-run average.

As economic pressures persist and the talent market evolves, new data from international recruitment firm, Robert Half, reveals a fundamental shift in employee priorities: skills are becoming the new currency in the workplace. The firm’s latest Salary Guide, which reveals skills commanding salary premiums, evolving pay expectations and the importance of emerging perks and benefits, highlights that nearly seven in ten professionals would exchange a pay rise for structured learning, certification or digital upskilling opportunities. This marks a turning point in workplace priorities – a shift from short-term gain to long-term capability building. Upskilling Emerges As The Real Currency Of Professional Value While pay remains a factor, only 3% of professionals view salary as irreplaceable. Most now see value in roles that offer access to AI training, data literacy and cross-functional leadership development – capabilities that enhance both employability and strategic impact. Across professional services, employers continue to raise pay selectively – 32% are doing so only for roles that blend digital fluency with sector expertise. Data analytics, generative AI, project management, financial strategy and compliance top the list of skills that command premiums. This shift underscores a deeper truth – experience alone no longer guarantees progression; capability does. For both sides of the market, investing in skill development is not optional but existential. Matt Weston, Senior Managing Director UK & Ireland at Robert Half, said: “The market is now pricing in capability, not tenure. Professionals fluent in data analytics and business intelligence, AI, project leadership, financial strategy and compliance are at the top of employers’ wish lists – and salary bands." “What distinguishes these skills is their transferable impact. They create clarity, speed and resilience – attributes every board values in uncertain conditions. Competitive pay still matters, but the best offers now go to those who can drive performance through insight and innovation. In today’s market, skills aren’t just valuable, they are what define future growth." “For employers, this shift means rethinking talent strategy. Developing skills is now as vital as hiring them. Training, leadership mobility and technology literacy are the levers through which firms will attract and retain top performers." “For employees, it signals an opportunity to view career development as an investment rather than a trade-off. In the modern professional economy, skills have become the most consistent source of value.”

Companies have to take stronger action against toxic workplace cultures that allow microaggressions and the silencing of victims to continue, says new research from Vlerick Business School. The study found that in many workplaces, due to the toxic culture, women are more likely to be silent when they face microaggressions and rely more on coping strategies. The researchers say that organisations must take more steps to create spaces for dialogue, rather than shutting them down. While gender equity policies exist in many organisations, a growing awareness of workplace inequalities has meant that discrimination has shifted from overt to covert forms, which the researchers say have become harder to confront in the workplace. The research was led by Delia Mensitieri, a doctoral student at Vlerick Business School and Ghent University, alongside Smaranda Boroș, Professor of Intercultural Management and Organisational Behaviour at Vlerick Business School and Ghent University, and Claudia Toma - OB and Leadership Professor at Solvay Brussels School of Economics and Management. The team examined over 700 experiences of microaggressions shared by more than 125 women via an online platform, investigating how women react, cope, and whether companies provide tools to empower them to respond. The findings showed that women frequently relied on several coping strategies instead of feeling able to speak up against microaggressions. These strategies ranged from misinterpreting microaggressions as harmless, questioning their intent, to recognising microaggressions yet feeling powerless to report them. This led to resignation regarding persistent microaggressions, resulting in feelings of disengagement and, in some cases, workplace exit. Finally, the strategy of addressing microaggressions was employed when individuals felt confident in their workplace to do so. "For too long, the message has been that women need to speak up when they face microaggressions. Our research shows that the problem isn’t women staying silent—it’s the workplace cultures that make speaking up risky or impossible,” says the researchers. To tackle microaggressions, the researchers recommend a two-fold approach. First, organisations should dismantle systemic silencing mechanisms through open dialogue, accountability, and bystander training. Second, they should provide stage-specific support, equipping individuals with the language, strategies, and tools to recognise, respond to, and cope with subtle workplace bias. Companies must actively dismantle the silencing mechanisms and create environments where women are empowered, supported, and truly heard.

Family businesses, often regarded as the bedrock of the global economy, embody a unique blend of loyalty, legacy and long-term vision. Yet, for all their strengths, they also face a perennial challenge: how to balance the bonds of kinship with the discipline of corporate governance. At the heart of this balance lies a deceptively simple principle — the clear definition of roles and responsibilities among family members. Without such clarity, even the most harmonious enterprises can descend into confusion and conflict so it really does go without saying that family members do need to understand which hat they are wearing and when in order to improve the chances of not running into trouble. The Fragile Fusion of Family and Business Unlike public or private equity-backed companies, family enterprises frequently grow from informal beginnings. Founders often rely on relatives to fill early gaps in expertise or labour, and over time these arrangements can solidify into habit rather than structure. As the business expands, however, those informal dynamics can become liabilities. Ambiguity about decision-making authority or reporting lines often leads to inefficiency. Emotional hierarchies — based on age, parental authority or sibling seniority — may override commercial logic. When family members wear multiple hats, personal grievances can quickly spill into the boardroom. Whilst we know that family businesses can be remarkably resilient they are also prone to dysfunction and issues can arise as the business and family evolve. The absence of clear roles often turn what should be a competitive advantage into a source of tension and potential disruptive conflict. Structure as Strategy Defining responsibilities formally is not a bureaucratic exercise but a strategic imperative. The most successful family firms recognise that professionalism and kinship can coexist — provided boundaries are respected. First, role clarity underpins good governance. Written job descriptions, reporting lines and performance expectations bring a sense of transparency and accountability. They reassure both family and non-family employees that merit, not birth order, determines advancement. Second, clarity improves decision-making. When authority is understood, execution becomes faster and cleaner. Confusion over who leads what can paralyse action — particularly in periods of transition or crisis. Third, formal roles protect relationships. With defined remits, disagreements can remain professional rather than personal. It becomes easier to challenge ideas without challenging identities. Finally, role definition is critical to succession planning. A structured framework allows the next generation to develop skills and credibility within clear parameters, smoothing the eventual handover of leadership. Minimising Misunderstanding and Conflict For families serious about longevity, a few practical steps can make a decisive difference. Establish a family constitution. Sometimes referred to as a family charter, this document articulates shared values, vision and governance principles. It should address employment criteria, dividend policies, and succession protocols. Having a written framework reduces ambiguity and provides a reference point during disputes. Formalise employment and appraisal processes. Family members should enter the business through transparent channels and be subject to the same performance evaluations as other employees. This strengthens credibility internally and externally. Separate family and business forums. Board meetings should deal strictly with commercial matters, while family councils or assemblies can address emotional and legacy concerns. The separation of spheres helps maintain objectivity. Introduce independent oversight. Appointing non-executive directors or external advisers can temper internal bias and bring valuable perspective. Their neutrality can prove invaluable when sensitive issues arise. Encourage open, disciplined communication. Regular, structured dialogue prevents minor misunderstandings from festering. It also ensures that both business imperatives and family values are continually aligned. The Long View The enduring strength of family enterprises lies in their long-term orientation. Unlike many corporates driven by quarterly results, family businesses often measure success in decades, even generations. But that horizon can only be sustained if the enterprise itself is managed professionally. In this respect, structure is not the enemy of family cohesion but its guarantor. Defining who does what — and why — allows family members to collaborate as colleagues during the working day, while preserving their relationships around the dinner table.

Leading glass packaging supplier Croxsons has received B Corporation (B Corp) certification, a globally recognised standard that measures social and environmental performance, transparency and accountability. The certification recognises Croxsons as part of a select group of innovative organisations that meet the highest verified standards of social and environmental performance, transparency and accountability. Certified by B Lab, the non-profit organisation behind the B Corp movement, this achievement proves that Croxsons has legally embedded its commitment to purpose beyond profit into its operations. B Corp certification evaluates a business across five key areas: governance, workers, community, environment and customers. The thorough process took about a year to complete, with Croxsons’ longstanding values and established practices providing a solid foundation for the assessment. Tim Croxson, CEO of Croxsons, said: “We have a long history of wanting to make a difference, to our customers, our team and our local and global communities. B Corp gives us the accountability and transparency to demonstrate that we don’t just talk the talk, but we walk it too. It also provides a framework for how we can be even better. As a business, we can’t do everything, but we must do something.” Giving back is fundamental to Croxsons’ culture, with the company’s charitable foundation - The Milk & Honey Trust - playing a vital role in its ethos. This dedication to social impact was a prominent aspect of the assessment and reflects the company’s belief in supporting both people and the environment. The certification also reinforces Croxsons’ core values of integrity, responsibility and long-term partnership. The company sees its achievement not as a milestone, but as a natural evolution of its longstanding approach to business, one that already prioritises stakeholders, communities and sustainability in every decision. Tim Croxson added: “Achieving B Corp status felt like a validation of who we are. It wasn’t about redesigning our business, but recognising the way we already work and the values we’ve always held. For us, this is not a moment in time, but an ongoing journey to improve; to be a better employer, a better partner and a positive influence within our industry.” Croxsons now joins over 10,000 B Corps worldwide, including Gu Puds, Tony’s Chocolonely, Patagonia and Sipsmith Gin. The company announced the news on the first day of London Packaging Week, held on 15 and 16 October at Excel, London. Learn more about Croxsons here .

The NFU is calling on the government to renew its relationship with farmers and growers at the Budget by introducing measures that will ignite investment and growth in the industry, as rock-bottom confidence leaves investment as bone-dry as the fields this summer. That confidence has been knocked most severely by the changes to inheritance tax, announced at last year’s Budget. At kitchen tables across the country, farmers and growers have been making choices about where to cut investment on farm to try to save capital to pay for possible tax liabilities that they'd been promised this Labour government wouldn't introduce. From the farmer in Yorkshire who can no longer invest in a new grain store to hold the wheat needed for your weekly loaf of bread, to the grower in Lincolnshire who has put off investing in a temperature controlled storage unit to keep the potatoes for your fish and chips fresh, farmers and growers across the country are holding back. NFU President Tom Bradshaw said: “Farmers and growers either choosing not to or being unable to invest in their businesses should worry us all. These are the businesses that produce the nation’s food, underpin the UK’s largest manufacturing sector – which is worth £153 billion to the economy and supports 4.2 million jobs – and manage and protect our iconic countryside." “This is the same farmed countryside that the Prime Minister and his Cabinet stood in front of on stage at the Labour Party conference with the slogan ‘Renew Britain’ emblazoned on top of sunny rural landscapes. The reality is far from sunny in those communities, with confidence levels at an all-time low. This matters because without investment in farming today, we risk food supplies for tomorrow." “During the Labour Party conference, the Defra Secretary said she wanted to ‘make sure the government renews our relationship with the NFU and the farming community’. Even at this late stage, there is still time for the government to do that. That’s why ahead of the Budget, I have urged the Chancellor again to take the handbrake off of Britain’s farmers, look at the alternatives on offer to the family farm tax and work with us to unlock the investment British food production so desperately needs."

Consumer card spending declined -0.7 per cent year-on-year in September, down from 0.5 per cent growth in August and lower than the latest CPIH inflation rate of 4.1 per cent. Essential spending fell -2.6 per cent, while growth in discretionary spending slowed to 0.2 per cent. Clothing, furniture and beauty all had strong months, however, as affordable, ‘pick-me-up’ purchases were prioritised amid wider cutbacks. Following an uplift in August, consumer confidence in the strength of the UK, European and global economy all fell in September, to 25 per cent, 29 per cent and 26 per cent respectively (down from 28 per cent, 31 per cent and 28 per cent). Consumers’ confidence in their ability to live within their means, however, reached its highest level in over four years, at 78 per cent, while confidence in household finances climbed to 74 per cent – a seven-month high. This comes as almost half of UK adults (44 per cent) say they are making changes to their personal finances in anticipation of November’s Autumn Budget, with a third (35 per cent) of this group building a savings buffer. Balancing budgets while finding room for treats Essential spending declined (-2.6 per cent) for the fifth consecutive month in September, while two in three (64 per cent) say they are trying to spend less on groceries. Growth in discretionary spending reached a 15-month low, up just 0.2 per cent year-on-year. This trend looks likely to continue, as almost half (46 per cent) of consumers say they are planning to reduce non-essential costs. Despite broader cutbacks, multiple non-essential categories benefited from ‘pick-me-up’ purchases. Furniture enjoyed its tenth consecutive month of growth, up 7.5 per cent, while pharmacy, health & beauty saw a strong performance once again (up 9.0 per cent). Clothing stores, up 2.1 per cent, marked eight months of year-on-year growth, as 20 per cent of shoppers reported spending more on clothes, shoes and accessories in September. Ahead of retail’s ‘golden quarter’, one in four (23 per cent) have already made a start on their festive shopping, buying gifts early to spread out costs, while three in 10 (27 per cent) put aside money in September to spend in the seasonal sales. Amid the rise of ‘kidulting’, which sees adults increasingly embracing hobbies and products once designed for children, one in ten (11 per cent) have purchased a game, video game, toy or collectible for themselves or another adult in the last year. One in five (17 per cent) believe playing with toys and games is good for stress relief and escapism, and 16 per cent see it as a positive alternative to screen time. In terms of these adults’ most purchased toys, 53 per cent bought a video game, followed by board games and jigsaws (24 per cent), Lego (22 per cent) and arts and crafts (21 per cent). Public transport slows amid London strikes Spending on public transport saw its greatest decline since March 2021 in September, down -2.6 per cent, following widespread transport strikes. Over one in three (36 per cent) Londoners said strike action reduced their monthly outgoings, with the biggest savings made on office food or lunches (£29 less), eating out (£29 less) and non-food retail (£26 less). Overall, face-to-face spending decreased -1.6 per cent across the UK – its greatest fall since June 2024. The travel category saw marginal annual growth of 0.8 per cent in September, below August’s 3.1 per cent. Within this, travel agents saw the strongest performance, up 4.2 per cent, however hotel spending (-2.2 per cent) dipped for the first time since July 2024 and airlines (-4.3 per cent) declined for the first time in over four years. Looking ahead, 38 per cent of those planning to cut non-essential spending say they will spend less on holidays abroad. Streaming excels once again Spending on ‘insperiences’ (at-home experiences) rose 2.7 per cent in September, while digital content and subscriptions grew 3.9 per cent year-on-year, helped by popular series such as The Summer I Turned Pretty, House of Guinness and The Girlfriend. Takeaways, however, dipped -0.6 per cent in September, as 53 per cent of those looking to reduce discretionary outgoings intend to spend less ordering meals “on-demand”. Of those treating themselves even when on a budget, a quarter (24 per cent) are opting to buy ingredients to make home-made treats, which likely contributed to the 1.5 per cent growth in food and drink specialist stores. Karen Johnson, Head of Retail at Barclays, said: “It is encouraging to see that UK consumers feel confident in their ability to manage their budgets, amid ongoing cost of living concerns. We’re continuing to see cautious spending, and shoppers are consistently seeking out areas they can cut back on. However, multiple retail categories have proven to be resilient in recent months, with furniture, clothing, and beauty all remaining in growth since February of this year.” Julien Lafargue, Chief Market Strategist, Barclays Private Bank and Wealth Management, said: “Although spending habits keep evolving, the UK consumer remains resilient in the face of an uncertain macroeconomic backdrop. With wage growth continuing to outpace inflation, there is room for spending to accelerate again when visibility improves.”

Family Business United is delighted to launch a new campaign to help quantify the extent of the family business sector across the UK - The UK Family Business Census. The campaign will use publicly available information on family firms across the UK to determine their contribution in a number of ways, creating a report that examines numerous metrics in support of the sector. Participation in the UK Family Business Census is simple with the completion of a simple form confirming the family business name and the unique registration number for the business at Companies House. As Paul Andrews, Founder & CEO explains, "We are always looking at ways to create meaningful statistics to help support the significant contribution that family firms make to the national economy and we are hoping that family firms the length and breadth of the UK will take part in this project." "Family businesses make a significant impact on a daily basis in terms of income generated, wealth created and people employed and we are looking forward to creating some quantifiable insights into the sector with this campaign." As well as capturing businesses for inclusion in the report, a number of optional questions will help to determine the extent of change going on within the sector in terms of leadership and succession changes expected over the next five years. As Paul continues, "There are lots of family businesses where the older generation are considering their next steps and it will be great to gauge the extent to which transitions may be occurring, and to determine to what extent the next family business leaders are likely to be family members or not." "The UK Family Business Census will be an opportunity to gather information about the changing family business landscape too." The UK Family Business Census report will be available in 2026. For now, anyone wishing to take part can complete the simple registration form to participate here

In Canada, family-owned businesses are far more than quaint storefronts or legacy farms. They are pillars of the national economy, central threads in the fabric of communities, and vital carriers of tradition, innovation, and social stability. Their significance extends beyond economics—encompassing legacy, trust, values, and intergenerational continuity. This piece explores the critical role family businesses play in Canada, what makes them distinct, the challenges they face, and how they can adapt to remain resilient in a rapidly evolving world. Economic Backbone The scale of contribution from family enterprises is profound. According to a joint report by Family Enterprise Canada (FEC) and the Conference Board of Canada, family-owned businesses are responsible for nearly half of Canada’s private sector GDP—about C$574.6 billion in 2017, or 48.9% of private-sector output. They also employ 6.9 million Canadians, accounting for 47% of private-sector jobs. Remarkably, 63% of all private firms in the country are family-owned. While large family-run corporations attract attention, the real weight lies in small and medium-sized enterprises (SMEs)—which make up over 99% of family firms. These SMEs generate around two-thirds of family enterprise output and support 90% of their employment. Family businesses also tend to endure. Between 2007 and 2013, about 70% of family firms remained in operation—slightly outpacing the survival rate of non-family businesses. Their staying power contributes to job stability, stronger local economies, and more resilient communities. What Makes Family Businesses Unique What distinguishes family enterprises is not just scale—but mindset. They often prioritize long-term continuity, stewardship, and legacy over short-term profit. Planning spans decades, not quarters. Succession planning is a central concern. According to the 2022 report "Who are the Guardians of Family Legacy?", 97% of next-generation leaders (ages 18–44) say maintaining the family business is important to them—compared with 74% of the senior generation. Younger successors also place greater emphasis on working collaboratively and keeping ownership within the family. These businesses often blend financial goals with non-financial values—loyalty to employees, commitment to community, and protection of reputation. Many are deeply rooted in place, influencing decisions around hiring, sourcing, and reinvestment. This embeddedness creates social capital—trust, identity, and resilience. Despite their caution, Canadian family businesses are entrepreneurial. In The Regenerative Power of Family Businesses report, 54% described themselves as having a strong entrepreneurial orientation—including risk-taking and innovation. More Than Economics: Community Anchors Family businesses are essential social pillars, especially in smaller towns and rural areas where they are often the largest or only employer. When they succeed, local schools, services, and supply chains benefit. When they struggle, the impacts ripple across the community—causing job losses, migration, and decline in services. They also carry cultural weight. These businesses often preserve local heritage, crafts, and environmental knowledge. Many give back through philanthropy, event sponsorship, and community engagement. Their longevity builds continuity and identity in the places they call home. Loyalty among employees is another hallmark. Staff often view themselves as part of a shared legacy, leading to stronger retention, tighter relationships with ownership, and more humane workplace cultures—especially in times of difficulty. Facing the Challenges Despite their strengths, family businesses face real and growing pressures: Succession remains a major hurdle. Many older owners worry about readiness or interest from the next generation. Even where interest exists, there are often gaps in governance, leadership development, or family alignment. Policy and tax environments add pressure. Recent federal budget changes have complicated intergenerational transfers—particularly affecting capital gains exemptions. These shifts often force accelerated transitions before families are fully prepared. Balancing tradition with innovation is another tension. Digital transformation, sustainability demands, and global competition require family firms to evolve—often faster than tradition allows. Data gaps limit support. There’s insufficient granular data on ownership structures, governance, or family involvement—making it difficult for policymakers to craft tailored strategies. External pressures like labour shortages, rising costs, regulatory complexity, and climate risks disproportionately affect smaller, remote family firms with less buffer to absorb shocks. Why They Matter Now More Than Ever Several current trends elevate the importance of family-owned enterprises: Demographic shifts : A significant leadership transition looms, with over 70% of family businesses expecting change within 3–5 years. Smooth transitions are critical to avoiding economic disruption. Rising complexity : From global markets to sustainability regulations, family firms need support to navigate demands they may be under-resourced to meet. Regional equity : These businesses play a vital role in distributing economic opportunity across urban and rural Canada—helping reduce disparities and strengthen social cohesion. Consumer values : Increasingly, buyers care about authenticity, sustainability, and local stories—areas where family firms have natural advantages. What’s Needed: Policy and Strategy for the Future To help family businesses thrive, Canada must take a tailored approach: Proactive succession support is essential—through leadership training, governance tools, and access to external advisors well before transitions occur. Tax and regulatory reforms must be designed with family business dynamics in mind, avoiding penalties for transitions or smaller firms. Improved access to capital, technology, and innovation support—especially outside major urban centres—can enable transformation and growth. Better data collection is needed to understand these firms and tailor policies effectively. Peer networks and knowledge-sharing can help family businesses learn from one another—on succession, innovation, sustainability, and governance. Family businesses are not relics of the past—they are vital to Canada’s present and future. They generate nearly half of the private-sector GDP, employ millions, and anchor communities across the country. Their values—rootedness, stewardship, legacy—are more relevant than ever in a time of rapid change and uncertainty. With the right policy environment, support systems, and cultural mindset, Canada can ensure that family enterprises not only survive generational transitions but continue to thrive—preserving both economic value and the human-scale trust that defines so much of Canada’s business landscape.

Agile and purpose-driven family businesses are outperforming their peers (31% v 21%), even as the portion achieving double-digit sales growth fell (from 43% in 2023 to 25% in 2025) amid heightened market volatility and uncertainty, according to PwC’s 2025 Global Family Business Survey. The survey, which interviewed 1,325 family businesses across 62 countries and territories and conducted in collaboration with the John L. Ward Center for Family Enterprises at Northwestern University’s Kellogg School of Management, finds that while single-digit growth remained robust (32% in 2025 v 28% in 2023), family businesses are veering on the side of caution. They are prioritising reputation and legacy in the face of broader market volatility, with almost onequarter (23%) noting they are looking to stabilise the core business over the next two years, up from 20% in 2023. At the same time, as new and emerging technologies transform the commercial landscape, a mere 3% noted they are looking to re-invent the business – even as three-fifths (61%) see AI as a growth opportunity. The survey highlights the importance of continued agility and purpose-driven management to commercial success in a volatile environment -- family businesses represent two-thirds of global GDP and 60% of global jobs, according to UN estimates. Jonathan Flack, Global Private Leader, PwC US, said: “Long seen as more resilient than listed peers, many family businesses are now under mounting pressure. Shifting trade policies, supply chain uncertainty, and market volatility are seeing family businesses veer on the side of caution – prioritising reputation and legacy." "While growth remains robust, the percentage achieving historic double-digit growth has fallen. Few businesses are immune to such external shocks – but family businesses that are agile and purpose-driven continue to outperform their peers, highlighting important strategic takeaways for businesses at-large." "But the pace of re-invention remains slow. As new and emerging technologies transform the global economy, businesses must be prioritising agility, innovation and their digital and AI transformation programmes if they are to remain agile and unlock new avenues for growth.” Family businesses reporting greater agility navigating market shifts, customer demands, and operational challenges over the past year were significantly more likely to achieve strong commercial outcomes: 31% recorded double-digit growth compared to just 21% of the overall sample. There is also a powerful link between purpose and core enablers of sustainable performance. Businesses with a clearly articulated purpose are twice as likely to pursue aggressive growth (18% v 9%), and significantly more likely to prioritise innovation (23% v 16%) and long-term goals (35% v 26%). A third (33%) actively foster a culture of experimentation and innovation, compared to just 24% of the total sample. Market Volatility Sees Family Businesses Veer To The Side Of Caution – Even As Agile Firms Outperform. But while agile and purpose-driven family firms may be yielding higher returns than their peers - market volatility is seeing family businesses veer on the side of caution. Just over one-third (35%) say they favour taking a cautious approach to their long-term strategies, with only one-third (32%) noting they are looking to selectively experiment. Looking at longer-term operational transformations -- a mere one-fifth (21%) say they are actively looking to rethink their management strategies, with a vanishingly small 3% noting they are looking to reinvent their businesses. As family businesses look to insulate themselves from macroeconomic shocks, safeguarding the business (78%) and preserving the family’s legacy (77%) rank as the top long-term goals – well ahead of generating dividends (68%). Roughly two-fifths (43%) note negative media coverage or public scrutiny represents the greatest risk to reputation. AI Seen As Top Growth Priority As family business contend with navigating a challenging macroeconomic landscape, they are also looking to new growth opportunities. Just over three-fifths (61%) cited experimentation with AI as a growth opportunity – in roundtables with family business leaders, some noted enhanced customer engagement and improvements in their dynamic pricing response times, even though they made relatively modest capital investments in GenAI deployment. They are also seeing output from AI -- while around one-third of CEOs from non-family businesses report increased revenue (29%) and profitability (32%) from GenAI, the returns among public family businesses are markedly stronger. According to family business data in PwC’s 28th Annual Global CEO Survey, nearly half (46%) of these firms report that GenAI has boosted both revenue and profitability. New and emerging technologies are key priorities – with technological advancements and digital transformation the top priorities for nearly two-thirds (65% and 64% respectively), particularly for mid-sized firms that are scaling up. Dr Matt Allen, John L. Ward Clinical Professor of Family Enterprises and Executive Director of the Ward Center for Family Enterprises at the Kellogg School of Management, Northwestern University, said: “Family enterprises have historically been labelled conservative in their approach to growth, often choosing to prioritize long-term performance, the protection of family assets, and the preservation of legacy. Some might assume that the 25 percent of family businesses in this study achieving double-digit sales growth are doing so in spite of these priorities." "The results, however, tell a different story. High-growth family businesses are embracing their family roots rather than shying away from them. These top performers leverage a strong sense of purpose, concentrated ownership, a long-term investment approach, and concern for their reputation." "When managed effectively, family businesses are uniquely positioned not just to withstand uncertainty but to thrive.” Unlocking Growth In A Volatile Climate To growth with confidence, PwC research points to four areas of focus that set top performers apart: Scaling your purpose. Clear and codified purpose is behind a range of growth-driving capabilities. Embracing your structural agility. High-performing family businesses are actively leaning into their centralised decision-making. Putting your “long-term capital” to work. In an era of macroeconomic uncertainty and geopolitical volatility, patient capital is proving to be a growth engine. Protecting and activating your reputation. For family businesses, reputation is both a legacy to protect and a lever to activate growth. You can download a copy of the full survey report here

With their sense of legacy, long-term thinking and deep community links, family businesses are different from corporates in that they often have several different ways to measure success beyond short-term profit. Many family businesses are firmly established and invested in the local communities, which means they understand the importance of social value - the family business’s impact on the community and wider society. That social value can cover a wide range of options, including apprenticeship and supporting local causes - but measuring and reporting that social value in an organised, credible way is a challenge many firms face. That’s where Axiom Sustainability Software comes in. As the only all-in-one platform that integrates social value, ESG, procurement, supply chain mapping and employee engagement, it gives family firms the tools they need to actually measure their impact beyond the balance sheet. What Is Social Value - And Why It Matters Social value is the benefit an organisation creates for its community, employees and wider society. For family firms, that can mean apprenticeship programmes, volunteering, local procurement, fair employment practices, charitable donations or employee wellbeing initiatives. These contribute not just to the companies’ reputation, but are also important to recruitment, employee retention, stakeholder trust and stability. Demonstrating And Embedding Social Value In Family Firms Family firms have a unique opportunity to create and measure social value in ways that strengthen both their businesses and their communities. This can take many forms: Apprenticeships and Training  – Taking on apprentices, mentoring young people or investing in staff development builds local skills, supports succession planning and helps create a feeling of loyalty. Auditing what you already do often reveals you’re contributing more in this area than you might realise! Volunteering and Community Engagement  – Encouraging employees to give time to local charities or support community events demonstrates values in action and builds strong relationships. Tracking and reporting hours volunteered provides real evidence of impact. Local Procurement and Supply Chains  – Sourcing from smaller local businesses or socially responsible suppliers keeps economic benefits in the community. Highlighting these buying decisions as part of your ESG and social value reporting makes these choices visible to stakeholders. Fair Employment and Wellbeing  – Inclusive hiring practices, flexible working, good pay and a focus on wellbeing create a positive workplace culture and help retain talent. Selecting relevant metrics, such as diversity measures or staff satisfaction scores, ensures these values are measured and recognised. Measuring and Communicating  – The most powerful step is turning good intentions into measurable outcomes. Platforms like Axiom can capture real-time data, link social value to ESG, procurement and emissions, giving you a full reporting capability. Sharing these stories through case studies, sustainability reports or weaving them into your family business narrative builds trust. Legacy is not only about what you’ve built, but also about what you are building for others. Where Axiom Makes A Difference As we mentioned at the start, Axiom is the only all-in-one sustainability platform. What that means is we can measure your social value and help you improve your sustainability performance. We’re proud members of the FBU and already work with several FBU members. Here’s what we offer: All-in-one platform covering ESG, social value and carbon footprint Axiom integrates social value alongside environmental and governance metrics, emissions, procurement and more. That means everything from apprenticeship schemes to scope-3 emissions can be tracked in one place, removing duplication and blind spots. Practical tools and support We offer a free carbon emissions calculator  for Family Business United (FBU) members to help firms measure where they are and set realistic goals. Expert guidance also helps family businesses navigate complex regulatory requirements. Strong family business roots and credibility Co-founder Joe Oughtred comes from a long line of family business, and is sixth generation in the William Jackson Food Group. This background means Axiom’s leadership has many of the same values - and challenges! - that family firms face, meaning they often have a good understanding of your business and your background. Trusted by fellow family firms Since our working relationship with FBU, we’ve started helping several family firms with their sustainability work, including the John Good Group and Bagnalls. For family businesses, social value isn’t optional - it’s part of the legacy. But without structured measurement, it can be invisible. Axiom’s all-in-one platform gives family firms the tools to capture, manage and report social value as part of a broader ESG and sustainability strategy. With leadership deeply rooted in family business, and practical tools like the free carbon calculator, Axiom understands and supports FBU members and their social value needs. About Axiom Sustainability Software - Axiom sustainability reporting software has been designed to help organisations reduce their carbon emissions, achieve net zero quickly, and accelerate their sustainability performance. Axiom is a powerful, cloud-based sustainability and environmental accounting platform that helps businesses monitor, analyse and improve sustainability performance. It provides a complete suite of tools to help organisations in every industry gain complete visibility and control over sustainability performance. For additional information visit their website here

In the heart of Renfrewshire, where lorry fleets roll out from Linwood and construction projects unfold across the country, The Malcolm Group has grown from humble beginnings into one of Scotland’s most respected names in logistics and construction. But while its operations are far-reaching, the heart of the business remains distinctly local, personal, and deeply rooted in family values. For over a century, The Malcolm Group has remained a family-led enterprise with a strong sense of purpose—focused not only on logistics and construction but on supporting livelihoods and preserving a legacy. A Horse, a Cart and a Vision Originating as a family-owned business in the 1920’s, The Malcolm Group began with assets of just a single horse and cart. A small family-run enterprise, its operation involved collecting coal from the nearby railway station, filling individual sacks in preparation for door-to-door deliveries in and around the local area. The success the company has enjoyed since then is largely due to the hard work and business savvy of one man – Donald Malcolm – who inherited the coal-round business from his late father. With entrepreneurial foresight and prudent investment in vehicles, plant and depots, he is responsible for building the business which we know today. By 1960, when the firm was acquired by Grampian Holdings, Donald had built it up to a fleet of 37 vehicles - plus seven items of plant. Consistent investment in the business, often ahead of market trends, lifted the company to its current status as a respected player in the logistics and construction markets. On 18th January 2002, Grampian Holdings plc was renamed The Malcolm Group plc and was fully listed on the UK Stock Exchange. In May 2005, after 45 successful years in the "public" domain, the Group was once again taken into private ownership by the Malcolm family, currently run by Donald’s two sons Andrew and Walter Malcolm. Leading with Purpose Today, Andrew Malcolm serves as the Group’s Chief Executive. Having worked in almost every part of the business, from the garage floor to the boardroom, he brings a grounded perspective to leadership. For Andrew, the company’s purpose goes far beyond financial performance, it’s about stability, trust, and responsibility. “My job in life is to protect the workforce I have got,” he says. “I want to make sure every generation that works in the business sees a secure future, a secure income. Our first priority has been to create security and an income stream for people’s families that they can actually depend and rely on.” This people-first approach is a key reason why the company remains so resilient. Many employees have spent their entire careers at Malcolm’s. Some families have had three generations working there. The Malcolm Group’s culture is stronger because of shared values, including – care for people, promises delivered, trust and integrity, pride in our work and mutual respect. Built on Relationships The company motto, “Practical Solutions, Successful Partnerships,” captures how The Malcolm Group prefers to work—with honesty, flexibility, and long-term thinking. In both logistics and construction, the focus has always been on building trusted relationships, whether with national clients, local authorities, or team members on the ground. Their logistics division now covers a vast network of warehousing, rail freight, road haulage and distribution. Meanwhile, their construction division services all areas of the construction industry including civil engineering & groundworks, sports surfaces, surfacing, plant hire, hiab & plant transport, tipper & skip hire, road sweeper hire, recycling, waste management, landfill and quarrying & aggregate supply. Despite its growth, the firm has always kept its feet on the ground. Andrew Malcolm's leadership reflects this balance—he holds fast to the company’s roots, but he’s also looking ahead. Practical Solutions, Sustainable Future Environmental responsibility is no longer optional in any industry, and The Malcolm Group is embracing the challenge. Sustainable business practices have been at the core of the Group’s one hundred years history – putting their people at the heart, building successful partnerships for longevity, and looking at new innovative ways to reduce their carbon footprint. Their experience has enabled The Malcolm Group to be adaptable, practical, and efficient – attributes they hold key as they progress their environmental sustainability strategy. As a cross-sectoral business, operating within logistics, civil engineering, and waste industries, they recognise the opportunities and challenges ahead. With each sector being a vital component of continued growth and economic viability of the UK, the transition towards Net Zero across each sector is unique, bringing their own risks and rewards. A consistent feature, however, is the importance of collaboration and collective agreement across peers, customers, industry bodies and governments. Their Environmental Sustainability Strategy compliments and supports their wider approach to ESG (Environmental, Social and Governance). They recognise the role they have in continuing to reduce carbon, improve air quality, enhance biodiversity, provide fulfilling employment opportunities, and connect communities. The Science Based Targets initiative (SBTi) has recently verified The Malcolm Group’s net-zero science-based target by FY2046, highlighting their continued commitment towards the climate emergency. This recognition demonstrated that The Malcolm Group’s climate related targets are aligned with climate science. Andrew looks forward to continuing their journey towards a greener future. Recognition and Responsibility In recent years, Andrew Malcolm’s leadership has been widely recognised. In 2023, he was awarded an MBE for services to the transport industry. The honour, he said, was not just personal, but a reflection of the collective effort of the business and the team he has led. “I’ve been quite lucky in life in that I do what I enjoy, and I enjoy what I do,” he remarked. “Although I’m the fortunate one who gets the honour, it is in no small way due to the business and team that I have around me.” He was also awarded an Honorary Doctorate by the University of the West of Scotland—an institution closely linked to the region and one whose graduates now work across the Malcolm organisation. For Andrew, it was particularly meaningful to be honoured by his local university and to see how the business continues to support and be supported by the community. Looking Ahead with Confidence Running a century-old family firm in modern times comes with real challenges—from volatile fuel prices and regulation to shifting labour markets and political uncertainty. But Andrew Malcolm takes a long view. The company is privately held, meaning it is not beholden to shareholders or quarterly earnings. That gives it the freedom to make decisions that benefit the business in five, ten or even twenty years from now—not just in the next financial year. He often speaks of the importance of stewardship over ownership—of maintaining something for the next generation. That ethos permeates every part of The Malcolm Group, from how it treats its staff, to how it invests in equipment, systems, and people. “My father was a phenomenal influence on me,” says Andrew. “What he gave me, what we’ve tried to hold onto, is the belief that when you look after people and keep your word, the business will look after itself.” A Legacy in Motion The Malcolm Group is proof that family businesses can scale without selling their soul. It demonstrates how tradition and innovation can co-exist—and how a sense of purpose, rooted in the value of people, can drive a business as much as profit margins or technology. As its trucks continue to criss-cross the UK and its teams break new ground on construction projects, The Malcolm Group remains quietly but confidently itself: proudly Scottish, wholly family-owned, and guided by the steady hand of experience. In a world of uncertainty, that kind of continuity may be its greatest strength of all.