Northern Ireland’s family owned businesses are less worried about Brexit and more concerned about handing over the reins to the next generation, a new survey suggests.
Although many family owned firms believe Brexit has created a degree of uncertainty, the majority of them – 78 per cent – say Brexit “will not be significantly detrimental” to their livelihood, according to new research from BDO Northern Ireland.
But 68 per cent of family businesses believe that having a succession plan in place is crucially important .
BDO’s Future of Family Businesses in Northern Ireland survey suggests that nearly three-quarters of firms in the North in 2017 are family run and more than half of these – 53 per cent – are in either their second or third generation.
The survey highlights that in almost 85 per cent of companies the managing director was male and usually a family member but that women, who were also most likely also family members, were not well represented in senior roles .
Confident
Although the majority of the North’s family firms appear confident about the prospect of Brexit BDO’s latest research shows that 93 per cent of them export to the south.
The business advisors also found that a third of the businesses did not understand the impact that Brexit might have on their business.
Some firms also told them that the UK decision to leave the EU was already impacting on their day-to-day operations – particularly those that employed a large number of foreign nationals – because some of their workers had decided to leave the UK.
Maybeth Shaw, partner and family business expert at BDO Northern Ireland, said the results of the survey suggests that while family owned businesses are upbeat at this time they also need to be aware of the challenges they face.
The BDO survey shows that 60 per cent of family firms currently have no succession plan in place.
“Family businesses are unique in that they have to find a balance which meets the needs of the family while also sustaining the business. Early planning and good guidance are critical to ensure they can thrive now and transition efficiently when the time comes,” she said.
