The release of our ninth PwC Global Family Business Survey comes at a time of extraordinary transformation. Digital technology is disrupting whole industries; sustainability is becoming central to the conduct of business; in the corporate and financial worlds, winning trust is more important than it’s ever been; and millennials represent an enduring demographic change.
After surveying nearly 3,000 family businesses across 53 territories, we were able to prove that family businesses - built around strong values and with an aspirational purpose - have a competitive advantage in disruptive times, that pay off in real terms. Therefore we believe there is an enormous opportunity for family businesses to start generating real gains from their values and purpose by adopting an active approach that turns these into their most valuable asset.
Key findings from PwC's Global Family Business Survey 2018
Explore the key findings from PwC's 9th Global Family Business Survey.
Explore Survey Themes
- Growth - and how to sustain it
- Getting value from your values
- Pursuing purpose
- Securing legacy in a digital age
- Private equity:thinking outside the family
Growth - and how to sustain it
This year’s survey finds family businesses in robust health, with levels of growth at their highest level since 2007. Yet there is a nagging sense among many family businesses that the trajectory of growth over the next two years and beyond can’t easily be charted, given a set of key challenges. Among the top five challenges were: innovation (66%), accessing the right skills and capabilities (60%) and digitalisation (44%).
Our survey findings also show that first generation family businesses clearly outperform those run by subsequent generations in their ability to achieve double digit growth, highlighting the need to balance business model continuity with an appetite for disruption.
Getting value from your values
As decision making grows more complex during an accelerated pace of change, family businesses need to implement guidelines and tools to codify their values as a way to make better decisions. And our research shows family businesses that make their values and purpose explicit and measurable, and incorporate them into strategic plans, see better returns and greater longevity.
Our survey findings show 70% of respondents felt strongly that having a clear sense of agreed-on values increased revenues and profitability. As many as 75% felt that having a clear sense of values gave them a competitive advantage. At the same time, only 49% of respondents actually had values articulated in written form. This rose noticeably to 53% among businesses generating double-digit growth. The message is clear: adopting an active stance towards values really pays off.
Pursuing purpose
Business leaders are talking more than ever about finding the right balance between the profit motive in business and a heightened sense of purpose that runs through the C-suite.
Survey after survey shows that the millennial generation, which makes up a sizeable portion of the workforce in most countries, expects companies to contribute to society, have a clear purpose based on values and be more sustainable. They want to work for companies they feel good about and tend to buy from those that meet their ethical standards.
Securing legacy in a digital age
Although family businesses recognise the challenge of digital technology, that doesn’t mean they are ready for it. One place to start is the board, where a strong combination of directors with the right skills can be hugely beneficial as family businesses look to tackle digitalisation. Another focus can be on millennials, who are the best-educated generation in history and are extremely tech-savvy. Part of your family business legacy will be determined by the way in which the next generation is encouraged to be involved.
Private equity:thinking outside the family
Family businesses and private equity are reaching a moment of convergence of interests – on goals, and even values and purpose – at a time when there is an increasing focus on long-term value generation, succession and professionalisation at family businesses. One of the most striking findings is that while 81% of respondents continue to rely more on banks for funding needs, more than a third of family business leaders said they would consider private equity.
Contact us
Esiri Agbeyi
Partner | Private Clients & Family Business Leader, PwC Nigeria
Tel: +234 (1) 271 1700
