Family businesses are business enterprises - small or large - that are controlled and run by one or more family members. They are different from other types of businesses due to the existence of real relationships rather than pure business relationships.

Family businesses account for more than 50% of the world's economy.

They are a major contributor to the Maltese economy.

The PwC Family Business Survey 2012/2013

We interviewed 100 Maltese family businesses generating a minimum of $5m turnover p.a. and talked to some of the longer established businesses.

Family businesses have experienced growth in the last year and are positive about the future

Human resource availability tops the list of internal challenges faced by family businesses

The general economic situation, and need for continuous innovation are the key challenges family businesses expect to face in the longer term

Nearly half of family businesses planning overseas sales in the next 5 years are targeting Africa as a main market

A third of family business owners will pass on ownership but not management to next of kin

We asked family businesses what Government could do to support them better...

  • Introduce specific types of grants or incentives e.g. for employment, staff training, starting up, taking risks for growth
  • Easier access to EU grants plus more information on what EU grants are available and how to apply for them
  • Listen more to family businesses & their needs. Provide advice, information & support to business professionals e.g. management skills training, access to think tanks/consultancy
  • Level the playing field re. legislation and compliance
  • Specific tax obstacles e.g. Capital gains tax, tax on re-invested profits
  • Pay invoices quicker / on time for government work

Family businesses recognise the need for external management input at a certain point

What will family businesses look like in 2017?

The need to grow and professionalise in order to compete on an increasingly larger-scale and global stage will blur the lines between family and non-family businesses over the next five year

Some respondents predicted new differences emerging including:

  • The involvement of the right people in the right roles and the integration of new ideas from new generations
  • New opportunities or threats from mergers and acquisitions
  • Adaptability and agility in the face of future change

What has changed from the 2012 survey?

  • Maltese family businesses have experienced growth in the last year but there is still a high incidence of consolidation
  • There is anticipation of growth for international business
  • Family businesses recognise the need for innovation
  • Many family run businesses feel the need to bring in non-family management
  • Government is giving importance to family businesses in Malta... But more can be done to support family businesses further

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