As noted in this month’s What’s Inside section, a recent survey by PwC reveals that family businesses have seen the largest growth increase in 15 years, with 43 percent reporting double-digit sales growth globally in the last financial year, up from 21 percent in 2021.
The findings were part of the 11th Global Family Business Survey, entitled “Transform to Build Trust,” covering over 2,000 family businesses across 82 countries between October 2022 to January 2023.
Notably, 73 percent of family businesses that experienced double-digit growth over the last financial year are those with a clear set of family values and an agreed purpose for the business, PwC said in a statement.
The survey reveals an upward trend in the share of family businesses willing to lead the way in sustainable business practices, PwC continued.
Family businesses also bounced back after the COVID-19 pandemic, the survey shows.
RESEARCHERS: FAMILY OWNED BUSINESSES HAVE TALENT- ACQUISITION ADVANTAGE
According to the 2022 Edelman Trust Barometer, family owned businesses are the most trusted companies — and have been for the last nine years — with 67 percent
of respondents saying they trusted family businesses, compared to 58 percent for privately-held, 56 percent for publicly traded, and 52 percent for state-owned companies.
67 percent of respondents say they trusted family businesses
Trust has become integral to attracting and retaining talent. If a business loses trust, they are more likely to lose employees. But business leaders often overestimate how much employees trust them.
According to a recent PwC survey, 84 percent of business leaders say employee trust is high, compared to 69 percent of employees. Researchers say this gap can lead to adverse consequences, including lower employee retention rates and a negative impact on a company’s bottom line.
