Survey finds 77% of family businesses expect sales to grow in next five years

Family-owned businesses are surviving the recession well but face challenges on several fronts, a new study shows.

The PricewaterhouseCoopers Family Business Survey, published today, shows that more than three out of four family businesses expect sales to grow over the next five years, despite continued economic pressures.

Paul Hennessy, PwC’s Irish family business leader, said a previous survey, in 2010, showed businesses were more focused on cutting and controlling costs to survive. This time around, 77 per cent anticipate sales growth and are looking at new export markets, primarily in Europe.

“That shows that they have really weathered a difficult period,” he said.

Family-owned businesses account for about 65 per cent of the Republic’s incorporated companies. Mr Hennessy estimated that their economic contribution could be anything between 45 per cent and 55 per cent of gross national product.

Mr Hennessy said they provided an anchor for the economy, often created employment and commercial activity in areas that would not otherwise benefit, and were committed to maintaining jobs in their communities.

Mike Conn of Conns Cameras, a second-generation business in Dublin, said: “As an employer of 21 full-time staff, you feel responsible for your employees. I believe a business like ours owes its success to the people who work here.”

Policymakers needed to recognise their contribution, he argued.