Family business sets growth pace

The world’s biggest family businesses plan to get bigger by investing in new talent, technology and expanded production.

A global survey by EY covering 1000 large family businesses in 21 countries, including Australia, reveals an optimistic broad outlook, with 64 per cent planning expansion in their home market this year and more than half looking to increase job numbers.

And while succession remains the most pressing challenge, 87 per cent have a firm handle on the issue. These businesses view succession as a process, rather than an event, have clearly identified who has responsibility for succession and have invested in preparing the next generation for leadership.

Those preparations have ensured a deep pool of potential successors, with the survey participants averaging five family members in their senior management ranks and seven in their business.

The survey reinforces research showing family businesses are ahead of the curve on gender diversity, with 55 per cent having at least one woman on their board and 70 per cent considering a woman for their next chief executive.