Request for Proposals: Assessing the Contribution of Family Firms to the UK Economy
The Family Business Research Foundation (charity no. 1134085) is seeking proposals from qualified research organisations or individuals ("the Contractor") to conduct a study of the economic contribution and performance of family businesses in the United Kingdom.
1. Background
Since 2008, the Family Business Research Foundation (FBRF) has periodically published a sector report scoping the size, scale, and diversity of the UK’s family business sector. Since 2014, this has been published most years, and has become an important source of evidence on the economic contribution of family businesses in the UK. The charity published its latest Sector Report in November 2022. The full report can be accessed here. This series presents regular updates on the characteristics of UK family firms: their size, structure, and concentration across different industrial sectors, and their geographical distribution across the UK. Our 2022 report used data drawn from the UK Small Business Survey and ONS’ Management and Expectations Survey, together with other sources of economic and business data, to estimate the contribution of family firms to UK GDP, employment, and the public finances.
A central focus of the charity’s work in 2023 was a study of tax and family business. The FBRF collaborated with PwC to design and deliver a study that aimed to estimate the total tax contribution (TCC) of family firms in the UK for the first time. The FBRF's Head of Research worked closely with a team of tax specialists at PwC to survey family firms to collect data on the full range of taxes that UK family firms contribute to the Treasury. The report was published in November 2023 and has been widely disseminated among the government, policymakers, family-business practitioners, and researchers. The report is available to download here.
2. About the project
The aim of this research is to provide up-to-date evidence on the economic and social contribution and performance of the UK family business sector, as well as demographic information about UK family firms.
The project will seek to address two main sets of questions:
(a) Family business demographics:
How big is the family business sector in the UK? What is the prevalence of family firms, and how does this vary by firm size, industry, and geographical location across the UK? What are the main characteristics of UK family businesses, and how are they different from non-family-run firms?
(b) Economic and social contribution:
What contribution does the family-business sector make to the UK economy - in terms of employment, taxation, GDP, and economic performance? And how do family firms compare with nonfamily businesses in their economic contribution, impact, and performance?
The proposed study will use the European definition of family business (see below). Demographic estimates and estimates of the contribution of family firms to the UK economy and public finances will draw on statistical data from multiple sources, including: the Department of Business and Trade’s 2023 Small Business Survey (due to be released later this year); the Annual Business Survey; ONS’ Business Population Estimates; and evidence from our own research, such as our study of large family firms; estimates of the tax contribution of family firms to the public finances will draw on evidence in our recent study of the total tax contribution of family firms in the UK.
The project will have three main outputs:
First, a short statistical report, which should include:
Approach to analysis, conceptual framework, methodology, and data sources.
Demographic profile of UK family businesses
Number of family firms
Rate of family business ownership by firm size
Geographical distribution across the UK (region, country)
The economic performance and contribution of family businesses (family vs. nonfamily)
Contribution of family businesses to UK GDP
Turnover and GVA of family firms, compared with nonfamily firms
Employment in UK family firms: number of employees by size and types of family businesses in which employment is concentrated
Estimated tax contribution to the exchequer
Second, a research briefing summarising key statistics from the study using infographics designed to communicate key results to decision makers, owners of family firms and their advisers, and the wider public.
Both outputs will be published online on the FBRF’s website and made available free of charge on an open-source basis. The contractor will work closely with FBRF to disseminate findings from the study to our main stakeholders: family business owners and their advisers; policymakers; practitioners; researchers, academics, and students; the wider UK business community.
Third, a presentation (online webinar/presentation at our annual research conference in 2025) communicating key findings and learning from the analysis.
3. Project proposal application details
If this project is something that you might be interested in, then please submit a fully costed research proposal to Dr. Martin Kemp, Head of Research at the FBRF, at info@fbrf.org.uk by Friday 26th July, 2024.
Proposals will be evaluated based on:
1. The proposed analysis strategy and methodology.
2. The feasibility of the proposed timeline.
3. The cost-effectiveness of the proposal.
4. The qualifications and experience of the research team.
The proposal should be a maximum of 1000 words in length (excluding CVs) and provide detail on each of the following elements:
(a) Project objectives
As specified above
(b) Approach, analytical methods, evidence, and data sources
Proposals should detail the analysis strategy, statistical and data sources to be used, and approach to writing the report (including authors). Our previous sector reports include examples of analyses that assess the economic contribution of UK family business, including information about the methodology and data sources used.
Please note that the FBRF adopts the European definition of family business. A firm, of any size, is defined as a family business, if
The majority of decision-making rights are in the possession of the natural person(s) who established the firm, or in the possession of the natural person(s) who have acquired the share capital of the firm, or in the possession of their spouses, parents, children or children’s direct heirs.
The majority of decision-making rights are indirect or direct.
at least one representative of the family or kin is formally involved in the governance of the firm; and
The listed companies meet the definition of family enterprise if the person who established or acquired the firm (share capital) or their families or descendants possess 25 percent of the decision-making rights mandated by their share capital.
(c) Outputs
Please outline how you would approach the study output(s) described above and also indicate who will be responsible for writing up the analysis, their credentials, and their experience writing statistical reports for business and policy audiences. Please also provide details on how you will assist the FBRF to disseminate and communicate findings from the study.
(d) Timetable
Applicants should provide a project timetable, including start and end dates and showing key milestones for each stage of the project.
(e) Project team
Applicants should provide information on members of the project team, their responsibilities, and the time they will each allocate to working on the project. CVs of members of the project team should be attached to your proposal, including details of any qualifications and experience relevant to the project. Applicants should indicate who will take the lead on the project.
(f) Budget
Please provide a project budget with a breakdown of the main costs. Note that the FBRF is a charity and therefore does not cover indirect costs.
4. Contact Information
If you have any questions about the project or would like further information, please email Dr. Martin Kemp on info@fbrf.org.uk
We look forward to receiving your proposals and thank you for your interest in this project.