57% of UK independent small businesses are family-run
16 new family businesses are opening every day as six in 10 Britons say they would be keen to start a business with a relative
Over half (57%) of UK independent small businesses are family-run with an average of 16 new family start-ups launching each day, according to new research from American Express ahead of next month’s Small Business Saturday initiative.
Based on national polls of 500 small business owners, 2,000 respondents, and data from the Institute of Family Business, the vast majority of family-hiring entrepreneurs said working with relatives had been good for business citing that their loved ones had more commitment to the company’s success, were better qualified and were more “knowledgeable”.
The research also found that six in 10 Britons would consider starting a business with a relative – 44% said they would go into business with a partner or spouse while 34% would look to start up with their mother or brother.
According to the study, family-run businesses have a greater appeal to customers. Six in 10 shoppers said they were more generous when spending in small, family-led businesses, with a fifth prepared to pay more even if they could find a cheaper price elsewhere.
Heather Laverne, American Express vice president, commented: “We know from our own research that over three quarters of people in the UK feel that small, family run businesses form an important part of their local community.
“In the run up to Small Business Saturday (December 5), we hope to encourage people to support their local small businesses and shop small.”