We are in the midst of Scottish Family Business Week with events taking place across Scotland to celebrate organisations under family ownership. Why the special occasion? What is so important about these companies? Well, with around 60,000 family businesses in Scotland with the collectivepotential to boost our annual economy by up to £1.23 billion, they positively affect every single person, whether they know it or not.
Family-owned firms dominate Scotland’s economy. That is fact. Yet often they’re not given sufficient prominence on the economic and political agenda. And why? Accounting for close to three-quarters of all Scottish business and around half of private sector jobs, they dominate the corporate arena and showcase why we simply cannot rely on large multi-nationals to drive our economy forward.
Many family businesses are leaders in their relevant industries. From larger household names like Macsween of Edinburgh and Arnold Clark to Dales Bike Centre and Three Sisters Bake, and whether they are simply a father-and-son duo or going into their eighth generation of family leadership, they all underpin our economy.
Some might argue that it is actually harder to generate long-term family business success as there is a prerequisite to keep the family committed to and capable of carrying on as owners. Maintaining family control while raising capital is a delicateequation that must be addressed, particularly in the transition of power from one generation to the next. This is a clear challenge with 57% of family firms having no defined plan for succession, and only 3% of family businesses surviving past their third generation of family ownership. Those that do,however, have a captivating story to tell.
As a fourth-generation family member of our construction firm Mactaggart & Mickel Group, you could say that I have a biased opinion on this matter but I would argue the opposite. I’ve forged a career for myself not only working within our family business but with other independent organisations to gain external experience. Witnessing first-hand the contrast, I’ve come to learn that family businesses are unique organisations with distinct personality and characteristics.
It is for this reason that I’m writing this piece; to acknowledge their influence, dedication and contribution but also to call for more focus to be placed on nurturing successful family business to help maintain and boost Scotland’s economy.Scotland has the potential to be a world leader in this field but we have to do more to support the growth of our family businesses. So take a moment this week and look around you – from the house you live in to the car you drive and the food you put on your plate, the impact of family business is everywhere.
Ross Mickel, director of Mactaggart & Mickel Group
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