Family businesses across the globe are optimistic about their recovery over the next two years with 86 per cent anticipating a return to pre-pandemic growth rates by 2022, according to a recent survey by consulting major PricewaterhouseCoopers (PwC).
The PwC's Family Business Survey in its 10th year was conducted among 2,801 family business leaders from 87 territories.
Of the respondents, 64 per cent expect to grow in 2021 and 86 per cent expect growth in 2022. With 58 per cent saying that all family members share similar views about the company's direction and only 23 per cent of respondents reporting that they have never had a disagreement, the survey indicates good levels of trust, transparency and communication.
Despite that, the report highlights the need for a clear conflict-resolution policy with only 15 per cent of respondents having such strategies in place.
The survey confirms an uptick in business succession planning. A total of 30 per cent of family businesses now have a formal succession plan, up from 15 per cent in 2018.
The top three long-term priorities are: protecting the business as the most important family asset (82 per cent), ensuring that the business remains in the family (65 per cent) and creating a legacy (64 per cent).
Although 80 per cent of respondents say that initiatives related to digitalisation, innovation and technology are a top priority, progress in those areas has been slow.
Only 19 per cent say that their digital journey is complete with 62 per cent believing that they have a long way to go. Of businesses that report having digitalised their operations, 41 per cent are in their third or fourth generation of managing the family business.
Top priorities for the next two years include expanding into new markets and customer segments (55 per cent), improving digital capabilities (52 per cent), launching new products and services (50 per cent), increasing the use of new technologies (49 per cent) and rethinking the business model (39 per cent).
The impact of Covid-19 on sales is uneven across sectors. Of those in hospitality and leisure, 84 per cent -- the highest proportion of any sector -- expect a contraction followed by 64 per cent in automotive and 63 per cent in entertainment and media.
Regarding the measures taken during pandemic, 80 per cent of family businesses enabled home working for employees and 25 per cent repurposed production to meet pandemic-related demand. Only a third of family businesses had to cut dividends and only 20 per cent needed access to additional capital.
( With inputs from ANI )
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