Family businesses thriving
Firms also among biggest employers, report saysFamily- owned businesses collectively create more than70% of annual global GDP, they deliver better long-term financial performances and account for the lion’s share of global employment opportunities. This was said by KPMG Family Business Unit head Alan Barr at a breakfast held at the Radisson Blu Hotel in Port Elizabeth yesterday. “Family businesses create more than 70% of global GDP annually. Between 50% to 80% of jobs in the majority of countries worldwide are in family businesses,” Barr said. “Average long-term financial performance is higher for family businesses than for non-family businesses. “During good economic times, family-run companies don’t earn as muchmoney as non-family-run companies. But when the economy slumps, family firms do perform better.” Barr was sharing the results of the first KPMG South African Family Business Barometer with an audience which included members of a number of prominent Bay business families. “Family businesses are key to the economic growth of South Africa and 73% of respondents [in the survey] are confident about the future despite the political uncertainty and unstable currency, ” he said. Pointing to the distinctive attributes of family enterprises, Barr said these included that they generally performed well, were discreet and had longer-term visions and strategies.
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