Family businesses in Scotland must ensure they have a succession plan in place, according to a new report from PwC.
The Family Factor: Professionalising the UK Family Firm, said only 13% of family companies have succession plans in place, even though they employ more than half the private-sector workforce in Scotland.
Martin Cowie, partner and PwC Scotland’s private business leader, said: “As family businesses emerge from survival mode, in what’s undoubtedly a harsher business environment, they need to not only identify what needs to change but ensure they have a robust plan in place to see it through.
“With increasing global competition and fast emerging entrepreneurs biting at their heels, no business can afford to stand still.”
Although the vast majority of businesses have no firm plans in place, according to the PwC report 43% do not want to pass the business on to the next generation wholesale. Meanwhile, 22% say they do want to keep their business in the family but also want to bring in professional management.
