How has your business coped with the ongoing economic uncertainty in the UK? According to a specialist family business lawyer, this economic uncertainty is less of a threat to family businesses than to other SMEs – so how has your business fared?
According to Nicolas Smith of the Veale Wasbrough law firm, the wider support structure surrounding family businesses generally helps to keep them afloat through rocky periods, where other SMEs might find it difficult to cope. He says; ‘There is often an ethos that the family business needs to by supported by the wider family when times are hard.’
He continues that they are also better able to plan long term as they are under less pressure to perform from stake holders. Stake holder also often come from within the family, again making them more able to be understanding when a business is not performing. What’s more, according to the government’s business advisory service, other benefits of family-run businesses include common values, strong commitment, loyalty, stability and decreased costs.
Family businesses make up 65% or 3 million of the total 4.6 private enterprises in the UK, according to the Institute for Family Business. They account for 38% of GDP in the private sector and 31% of GDP in the public sector, again according to the Institute. This shows that a great number of businesses are likely to be resilient against the affects of economic uncertainty.
Of course, there are ways that any SME can counter the affects of limited growth and uncertainty. If your business is suffering from tight cash flow, a by-product of late payment and low sales, then invoice finance could help. It has a proven track record of helping all sorts of SMEs out of financial difficulties, from family businesses to start ups and beyond.