Having recently teamed up with KPMG to publish a major report on the state of family business in Australia, Philippa Taylor, CEO of Family Business Australia shares her thoughts.
Do you believe that small-to-medium sized businesses are adequately represented at a government level?
Traditionally, policy makers have focused on addressing family business issues in concert with those of the small and medium-sized enterprises (the SME) sector, believing that this focus will simultaneously address the needs of family-owned and operated businesses. While the majority of family firms are SMEs, there are large family firms that share many of the same concerns as their smaller counterparts. The issues, therefore, transcend size.
Family Business Australia (FBA) supports the view that a size-driven policy agenda will fail to address those issues unique to family firms. Policy makers should view the family business sector as distinct from these others with issues of its own.
The KPMG report flagged succession planning as being a major concern for family businesses, what should owners do to ease their concerns?
Family business owners should start the conversation about transition well before they actually plan to hand over the leadership role. It should be a natural part of the strategic planning for the business. FBA has developed a strategic planning course for family business operators. We recognise that the process of transition is fraught with challenges; who is the best member of the family to take over? Will my retirement be funded as I expect? What will I do when I am no longer running this business?
FBA also hosts conferences and seminars where family business operators can share their experiences, and discuss these issues with others in the same boat. Everyone tends to think they are the only ones facing these challenges – it’s worth learning from peers and qualified, accredited family business advisers.
Do you think we will see more family-owned and operated businesses in the next couple of years?
The global financial crisis and economic volatility has seen many family businesses bunker down. Transition has been delayed for many. Family firms are known to have, on average, a 30% better return on investment, so why not more in the future? Is there also a tendency to be wary of employment in a large multi-national, after some of the corporate collapses we’ve witnessed recently? Perhaps.
For a sole trader considering involving his family in the business, what’s the biggest advantage?
You can’t go past the notion of a shared passion. Who else would you trust more than the person you share a bed with, or Sunday dinner? Some of our most iconic family businesses, now in their third and fourth generations, started out as sole traders.
What are the benefits of being a member of your organisation for a family business owner?
The opportunity to learn about practices that would prevent many of the negatives attached to family businesses. Apart from FBA’s strong education program, like our Family Business Directors Course (designed to fit around busy family firm operators), the chance to meet other family business operators who share the same issues and concerns – and who are so willing to impart their wisdom. We have a very popular forum program, where 10 family business members meet once a month to exchange ideas, network and support each other.
