Developing & Sustaining Scotland’S Family Businesses
Developing & Sustaining Scotland’s Family Businesses Martin Stepek CEO, Scottish Family Business Association
Family Businesses Dominate the Scottish Economy Driver Standards 69% of all businesses 45% of GDP 900,000 jobs 50% of the private sector workforce 41% of 100 biggest companies in Scotland are family businesses
Family businesses, including the largest, remain located throughout Scotland, sustaining jobs and wealth creation locally. Family Businesses Sink Deep Local Roots
Family Businesses Sustain Communities Driver Standards Large scale local philanthropy Potential to regenerate deprived communities Family businesses don’t seek short-term return on investment, but have a range of long-term personal, social, ethical and monetary goals
Family Businesses Have A Huge Problem <ul><li>70% disappear at times of succession: 1600 in Scotland p.a. </li></ul><ul><li>Not just first to second generation but between any generation </li></ul><ul><li>Not due to poor quality leadership or management in next generation. </li></ul><ul><li>Increasingly complex family dynamics and emotional entanglements make normal governance impossible. </li></ul><ul><li>Massive unreported loss of jobs, indigenous companies, factories, shops , and the social benefits of family businesses </li></ul>
The Solution <ul><li>Failure is down to increasing complexity over time of family businesses, particularly expansion of family </li></ul><ul><li>Family Businesses need specialist training on governance, leadership, communication and their a dvisors need to be fully equipped to provide support specific to family business </li></ul><ul><li>The learning on best practice is available now : 20 years of global research. We need to get this information to the relevant companies </li></ul><ul><li>SFBA was created as a charity by eight family business leaders to bring the world’s leading practices on good family business governance to Scotland. Help us make it happen. </li></ul>
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