Australian Family Businesses
As the oldest type of commercial organisation, with distinct advantages and economic benefits, Family-owned businesses are important contributors to the Australian economy, accounting for up to 70 percent of Australian businesses and employing up to 50 percent of the workforce.
According to Family Business Australia, the family business sector is valued at around A$4.3 trillion and offers long-term benefits to Australia’s economy by hiring Australians and supporting local communities. Family businesses have a unique ability to develop lasting relationships with clients and staff and are equipped to provide unmatched customer service that can make a real difference in the lives of others. They also benefit from a distinct competitive advantage as they are typically regarded as trustworthy.
Family Business Growth
According to a 2018 poll by KPMG and Family Business Australia, family businesses thrive on strong communication and constructive conflict among family members, which can work to boost the sustainability of the business. The ability of family businesses to swiftly adapt in times of crisis by putting their employees and community first makes them unique and helps in overall stability. The vision of a family business is constant and unified, which offers up more potential for business growth and success.
The Backbone of the Australian Economy
Trust and Authenticity
According to the 2019 Edelman Trust Barometer, family businesses are trusted by 69 percent of the public, a 13-point edge over other franchised, foreign-owned or multinational businesses. Authenticity and a culture of trust help family businesses to pave the way for professional and overall development. When family members collaborate and share their successes and accomplishments, it’s more than simply a job; they’re investing in their family’s future. This is frequently evident in business operations and how they interact with their clients and consumers, who benefit from this investment.
Commitment
Family businesses have a greater sense of commitment and accountability. A family-owned business has the distinct benefit of getting things done, from settling a dispute to moving towards a common goal without being influenced by office politics. Family businesses often communicate directly with management, are less bureaucratic, have a built-in trust factor, and allow the next generation to gain early exposure to the business through hands-on training. Family businesses maintain good relationships based on strong communication skills, excellent dispute resolution abilities, and the fact that all parties share the same goals and aspirations.
Long-term Outlook
Most businesses usually set up their goals and objectives for the next quarter. Many family-owned businesses, however, plan for years or even decades ahead. Taking a longer-term perspective helps to build a culture of decision-making and long-term strategic thinking throughout the business
Flexibility & Versatility
The flexibility and willingness of family businesses to go above and beyond help in driving continued success, progress, and a better understanding of their industry. Family-owned businesses are more successful and have lower debt levels than non-family-owned and operated firms. The intrinsic stability of family enterprises, as well as their distinct cultural characteristics, contribute to positive economic outcomes.
Transition to the Next Generation
The shift of leadership or ownership from one generation to the next is one of the most important events in the family business lifecycle. Family businesses have the benefit of a well-thought-out long-term succession plan for a seamless and well-structured, stable transition, and the history of long tenure of CEOs in family business ensures long-term business stabilities. All of this helps in maintaining long-term business policies that are already in place while increasing knowledge-force and gaining access to new generations’ thoughts and innovative ideas for the success of business in a rapidly changing business world.
