Scottish businesses are focusing on the next generation with more than one-fifth (21%) of owners planning to build their company as an inheritance for family members, according to research from Santander Corporate Banking.
Date:
Tue, 20 Sep 2011
Source:
Santander
The research underlines the importance of family-run firms to the UK economy – a recent study by University of Birmingham on behalf of the Unquoted Companies Group estimates around 21% of all UK workers are employed by family-run firms.
Passing the business on as an inheritance is the strongest motivation for long-term development among Scottish companies, along with expanding regionally and building the business to be sold to fund retirement.
Around 19% of owners want to expand regionally while 20% plan to sell their company and retire. Just 9% of business owners in Scotland are planning to run down and eventually close their company.
For the UK as a whole, that rises to 25% of sole traders who are less likely to be able to sell their businesses.
Kevin Boyd, divisional managing director for Scotland at Santander Corporate Banking, said: "Being able to pass on an inheritance to the next generation is powerful motivation for succeeding in business and it is striking that keeping it in the family is so important.
"Focusing on inheritance tends to drive long-term thinking on business strategy and that is clearly good for the future of companies even during tough trading times.
"It is encouraging to see that the vast majority of businesses do have a long-term aim for the development of their company.
"Long-term thinking requires a banking relationship to help support growth and Santander is committed to working in partnership with companies to help them unlock their potential."