Today, on Australia’s National Family Business Day, Australians are encouraged to reflect on the contributions of family-run businesses. Seven in 10 of Australia’s 2.5+ million businesses are family-run, making family businesses a significant part of the economy.
“It’s a big responsibility owning and running a small business, and that is magnified when it is a family endeavour,” said Bruce Billson, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO). “When the dining table becomes the board table, that can create a unique set of challenges.”
When the dining table becomes the board table
Many family-run businesses count on multiple family members investing their whole lives in the enterprise, said Billson. These familial groups often put their homes on the line and pitch in financially during tough times.
“For many, there’s no clocking off at the end of the day or on weekends,” Billson explained. “They are always going because they know the stakes are high.”
Family businesses come in all shapes, sizes, and sectors. The most family-run sector is agriculture, forestry and fishing, while about one in 10 people working in a family business are in construction, accommodation, food services, and retail.
Older workers
Family businesses are an important employer for older workers. A quarter of workers over 80 are contributing workers to a family business, the ASBFEO revealed.
“As we get older, those who stay in the workforce are increasingly likely to be associated with a family business,” said the Ombudsman.
Its older cohort means that family business must face the challenge of succession planning. Planning, an understanding of the law, and trusted third-parties are often necessary to the succession process, added the Ombudsman.
“For the parent, passing the business onto the kids can be an ideal way to end their business journey,” said Billson, “but sometimes the next generation are not interested or have developed skills and interests not necessarily aligned to the family business.”
The ASBFEO commended both the Family Business Association and Australia broadly for their recognition of family-run businesses.
“Australia is one of the few major economies that records and recognises the immense contribution of family members to a business, even when they might not receive a separate income for their endeavours,” Mr Billson said. “It’s a great moment to reflect on the crucial role family-owned businesses play in the economy and throughout our communities and I commend the Family Business Association on this initiative.”
