Celebrating the first Scottish Family Business week at East Links Family Park, East Lothian.
L-R: Grant Bell, owner of East Links Family Park; Dr Claire Seaman, Reader in Enterprise & Business; and Richard Bent, Senior Lecturer in Enterprise & Business at QMU
This new research is raising
awareness of the impact of poor
succession, lack of exit strategies,
failure to transfer a family business
successfully from one generation
to another and how this could be
damaging the Scottish economy.
In 2012, 17,385 new enterprises were
set up in Scotland, but 16,760 of these
have now ceased to exist. A number
of these business closures resulted
from failed business succession.
Surprisingly, the survival rate of new
businesses after five years is around
35-50%. In contrast, the survival rate of
business transfers is around 90-96%.
The research is also beginning to show
that transferred businesses outperform
new start-ups in terms of turnover,
profit, innovation and employment.
QMU is working with a number of
partners in an effort to discuss these
issues, influence thinking on future
policy and practice and to identify
practical interventions.
The conclusion of the research
suggests that more focus needs
to be placed on successful family
business and SME transfer to help
maintain and boost Scotland’s
economy. Researchers agree that
improved infrastructure and support
mechanisms can help protect jobs,
increase employment, widen business
ownership and maintain existing local
supply chains.
Dr Claire Seaman, Reader in
Enterprise & Family Business at QMU,
said: “Feedback from this latest study
has confirmed that family businesses
are crying out for the right kind of
support to help them succeed beyond
the first generation.
“This collaborative research has
explored ways of improving the growth
and sustainability of Scottish SM Es
and family businesses, but more
specialist support is required.
“If we want to change thinking
and practice and improve business
succession across these businesses,
we need an integrated approach to
learning, research and influencing
policy.” ❒
QMYOU / Sustainable Business
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