New report reveals substantial contribution of family firms in the South West
A new report reveals the full extent of the contribution South West family firms make to the UK economy.
In the South West there are almost 460,000 family firms, making up 89% of total businesses. They employ over 1 million people, providing 55.7% of private sector employment.
The new UK Family Business Sector Report, produced by Oxford Economics for the Institute for Family Business (IFB) Research Foundation, reveals that family businesses’ GVA contribution to UK GDP has increased by £100 billion since 2010 – to £519 billion – meaning family firms now generate a quarter of UK GDP.
Elizabeth Bagger, Institute for Family Business (IFB) Executive Director, said: “Family businesses are the backbone of the UK economy – but their widespread presence and contribution to the economy are often underestimated. You will find family businesses all across the UK, in every industry sector – from sibling start-ups to multi-generational international brands.
“Family businesses in the South West create a substantial proportion of employment, and we are proud to champion and delighted to celebrate this incredible contribution.
“Since 2010 there are a million more family businesses in the UK, proving that family firms are here to stay. Not only have family firms created an extra 2.3 million jobs since 2010, but their tax contribution each year is more than the annual NHS budget. This all demonstrates how growth in the family business sector benefits the UK economy, consumers, the exchequer and the millions who work in family businesses.
“To ensure family businesses continue to flourish, we’re calling on the Government to support them with policies which allow family firms to plan and invest for the future.”
Key findings from the report
- Family firms now turn over £1.4 trillion annually, up 7.2 per cent since 2010 – family business turnover has grown by more than that of non-family businesses since 2010
- Family businesses contributed £149 billion in taxes in 2016 – more than the annual NHS budget