Family firms and their economic benefits

On 6th March 2025, Professor Mat Hughes, University of Leicester, was invited to present on the topic of family firms to UK Finance, drawing on findings from the Research Foundation’s latest Family Business Sector Report.

The presentation highlighted the significant economic contributions that family firms make to the UK economy, noting that they constitute the majority of private sector companies, generate substantial turnover and GVA, and provide a large percentage of employment.

Professor Hughes’ presentation emphasized how family firms’ unified ownership and control are associated with an emphasis on socioemotional wealth in determining their decisions — a factor especially relevant to policies intended to drive growth.

Family firm decision-making prioritizes family influence and long-term sustainability. This can be contrasted with the focus of non-family firms on value or wealth maximization.

Finally, Professor Hughes discussed the innovation approaches of family businesses, their unique “survival capital”, and concluded with policy recommendations aimed at supporting their continuity and recognizing their vital role in the UK economy.

Click here to download the slides from Professor Hughes’ presentation:

Thumbnail photo by Alev Takil on Unsplash