Deborah Meaden calls family-run businesses ‘backbone of the economy’

A survey of nearly 1,200 family business owners found a whopping 82% believe that collaboration across generations is crucial for growth. They shared the benefits of working with family members include loyalty, trust, and emotional support. The older generation is appreciated for their strong work ethic, industry knowledge, and mentoring abilities, while the younger members are depended upon for their expertise in social media and digital marketing, tech-savviness, and innovative ideas.

However, challenges remain, with over half of those surveyed citing energy costs as their biggest financial hurdle, followed by escalating operational costs. Four out of ten are grappling with the rising cost of living, and over a third are dealing with increasing supplier costs. Additionally, 18% mention increased competition in their market, and a staggering 85% point out long hours and lack of time to complete all tasks as further challenges.

Entrepreneur and Dragons’ Den investor Deborah Meaden, who has teamed up with Smart Energy GB, the organisation responsible for the research, emphasised the critical role family-run businesses play in the UK economy, describing them as the ‘backbone’. She prasing family-run businesses for “providing stability, innovation, and a sense of community across generations.”

Meaden suggests that one simple yet effective way for businesses to reduce costs is by installing a smart meter, which could help identify potential areas for savings. She expressed, “These types of business have stood the test of time, and I believe they will continue to thrive in the future, adapting to new challenges while staying rooted in their family values.”

The need for smooth transitions is paramount among family-run entities, with 26% prioritising succession planning. A robust 85% are confident that their legacies will stay within familial bounds. Eight in 10 hope their younger family members will step up to take the reins, and only 7% foresee their businesses closing or being sold outside the family.

Gianluca Capilungo, co-owner of Capilungo café, London, said: “We learnt a lot from our uncle in Italy about how to run a successful business which has been invaluable especially as, like many businesses, we have experienced a lot of challenges since we opened.

“Rising costs have been an issue as pretty much everything has gone up, from produce to energy. Getting a smart meter was an easy thing for us to do, as it has helped us to manage our energy use and budget.

“We are invested in the business’s long-term success and making it financially secure, so we can leave it to the next generation and ensure a piece of our family heritage stays in the local community.”

According to the study, a significant 85% of family business owners consider sustainability a top priority, with key areas of focus including recycling (33%), energy management (29%), reducing packaging waste (26%), investing in energy-efficient equipment (22%), and sourcing local suppliers (21%).

Victoria Bacon, a Director at Smart Energy GB, said: “We know from our research that business owners are dealing with financial strain, with running costs, including energy, high up that list.

“A smart meter measures energy usage in near real-time, which means you only pay for the energy you use and no longer receive estimated bills, which can help a business with managing its cashflow.

“Family businesses clearly see the positives of generations working together and being able to play to everyone’s individual strengths. It’s good to see that the vast majority of owners are optimistic about the future prospects for their businesses.”