Is Family Business Even a Thing?
For many regional Australians, a family business is just the default way they put bread and cheese on the table. Where jobs are few and families work together, family business is normal and natural. The family farm, the general store, the partnership running a trade or contracting business, the biggest independent brewer in the country… Across all sizes and industries, you’ll find family business.
And yet, this is a special way of structuring a business, with its own opportunities and challenges. It’s not unusual – around 70% of Australian businesses are family owned, and they employ about 50% of the private-sector workforce. But it’s a very under-recognised and under-served business sector.
What counts as a family business, exactly? Definitions vary, but our rule of thumb is: it’s under the effective control of two or more members of the same family.
The overlap of family and business dynamics produces a wide and wonderful range of models and outcomes. But here are a few typical common features:
- They think long-term, often in generations not years, and value legacy and continuity over short-term profit.
- They look after their communities. In Australia they contribute about $1B a year to philanthropic work.
- They are steered by values. Doing the right thing matters.
- They are trusted. Seventy percent of consumers trust family more than non-family businesses.
- Their biggest single moment of danger and conflict is almost always the generational handover – the succession thing.
If you’re a family business stakeholder, there’s a peak body with a lot of knowledge and support to offer you: the Family Business Association (familybusinessassociation.org). They also have a stable of trained and accredited family business advisors, and I’m proud to be one.
This month we are celebrating family businesses, especially in Australia’s ever-innovative regions. Friday 19th September is National Family Business Day. Hey, celebrate what you’ve got – it deserves celebrating!
And if you’re struggling with the dilemmas of involvement in a family business, or simply want a sounding board who specialises in your world, give me a call. Let’s explore how I may be able to help you. And hit me up for a free copy of our pocketbook on succession.