Family businesses are flourishing in the UK. Research conducted by the Institute for Family Business* reveals some interesting statistics about just how important family businesses are to the economy, to employment, to our regions and to some of our most significant industries. 

Take a look at our top ten facts on the vital contribution made by family business to the UK.  

1. Around 3 million family businesses operate in the UK. Most are SMEs and they represent an impressive two thirds of all private sector companies.  

2. Two in five private sector jobs are provided by family businesses. That’s 50% more than the entire public sector.

3. Almost 2 million family businesses are also sole traders, that employ family members. Most of the others are incorporated companies.  

4. Family businesses are more trusted by lenders. During the recession they succeeded in 76% of applications for external finance. For non-family firms the number was 68%.

5. The sectors with the highest concentration of family businesses are farming and extraction (89%), hotels and restaurants (85%) and wholesale and retail (77%).

6. A massive 499,000 family businesses exist in the South East – the highest number in the UK. London has 466,000.

7. During 2010, family businesses contributed an estimated £81.7 billion to the UK exchequer. That’s 14% of total revenues.

8. Family businesses generated £1.1 trillion in revenues in 2010. That number represents 35% of private sector turnover.

9. Over 70% of people agree that family business makes an important contribution to the UK economy. **

10. 53% of people believe family firms have stronger values than non-family businesses. **

If you are part of a family business and would be interested in sourcing a business mentor why not sign up for our free Meet A Mentor 'Family Business Special' organised by the IOEE, and supported by Lloyds Banking Group, on the 24th September 2014.

*http://www.ifb.org.uk/media/44219/theukfamilybusinesssectorreportnov2011_final.pdf
**http://www.ifb.org.uk/latest-news/family-businesses-more-trusted-than-listed-companies.aspx