Tue 11 / 08 / 26
Keeping it in the family business
Family businesses make up nearly three quarters of UK Small and medium sized businesses, but the lessons they offer go far beyond family ownership. In this blog, Melanie Dumelow from the University of Brighton's Help to Grow programme explores the common challenges family businesses face, the habits that help them thrive, and what every business leader can learn to build a stronger, more resilient organisation.
By Melanie Dumelow of University of Brighton
73% of Small and Medium Enterprise businesses are family owned*, here Help to Grow looks at what all businesses can learn from the strengths and weaknesses that family businesses share.
The Help to Grow programme has seen a rising number of local family owned and managed businesses joining their leadership programme. These businesses continue to be a critical part of the UK economy, both in terms of employment and economic output.
A family run business can face many challenges and the majority are the same as all businesses can face:
- Succession planning: Without a clear succession plan, businesses, family run or not, may struggle with leadership voids, internal conflicts, and misaligned visions.
- Growth and innovation stagnation: Family businesses can be more likely to want to preserve tradition, but any business is vulnerable if they resist adopting new technologies or approaches fearing it could disrupt their legacy or alienate their loyal customers. This can stand in the way of future change and growth.
- Work life balance: This is much harder to maintain when work and personal relationships merge but this is an issue that most business leaders, particularly in SMEs face. It is something vitally important to workers as well as job seekers who count work life balance as a dealbreaker when applying for jobs.
The Agora Clinic is a Brighton family run business who sent two colleagues on the last Help to Grow programme. Sebastian Gilling-Ulph explained the benefits to them:
“I have looked at the business holistically and how my marketing influences all the other departments in the business. So many courses are only online and this one being a mix with face to face is much more valuable, mixing with other businesses.
The digital resources have allowed me to go back over recordings to support my learning.
We are a family business and others here are similar which has helped. Taking the course with my colleague - having the same learning helps us to plan and implement together.” Sebastian Agora clinic
Successful family run businesses share traits we can all learn from:
- Strong governance structures: Successful multi-generational family businesses often have well-defined governance structures in place. This includes family councils, boards of directors with external members, and clear policies for decision-making and conflict resolution.
- Strategic succession planning: Businesses will invest time and resources into preparing the next generation for leadership. They ensure that successors are prepared not just by family ties but also through education and experience.
- Adaptability: Thriving family businesses are those that continue to evolve. They are willing to pivot, innovate, and explore new opportunities to ensure that the business remains relevant in changing market conditions.
- Preservation of family values and vision: A shared sense of purpose and commitment to the businesses core values often binds successful businesses together. This continuity in vision helps maintain a strong culture and ensures that the business remains aligned with the founding principles.
How Help to Grow can help
The course helps businesses to think ahead of the curve, look at new ways of doing things and to truly understand your market to prevent stagnation. One module covers vision, mission and values and another covers how to ensure you are structured to allow for growth.
Local businesses often send senior managers on the programme as part of training them in a broader range of business areas as part of their succession planning for future leadership.
Taught online and face to face by experts from the University of Brighton, Help to Grow has had over 300 local businesses join the programme. If you have 5-249 staff you can benefit, whether you’re a family business or not.
The next courses starts in October 26 and all chamber members get 50% discount on the cost - find out more Help to Grow
Find out more about Help to Grow's management progamme here.
If you want to contribute to the Chamber blog, contact us on hannah@brightonchamber.co.uk