Europe’s family businesses get ready to hand control to next generation: KPMG Private Enterprise European Family Business Barometer

● 62 percent of Europe’s family businesses are confident or very confident about the future

● The war for talent, declining profits and regulatory change are seen as key challenges

Europe’s family businesses remain positive about the future at a time of rising economic and geopolitical uncertainties. Innovation, training and education, and diversification are key priorities as they adapt to a fast-changing world—while planning for succession is increasingly on families’ minds.

These are among the key findings from the eighth European Family Business Barometer, a survey of Europe-based family businesses produced by KPMG Private Enterprise and European Family Business (EFB). Researchers surveyed 1,613 family business executives in 27 countries across Europe for this year’s report. 

Key highlights

·  62 percent of respondents are confident or very confident about their business’s outlook for the next 12 months. Optimism is especially high among family businesses in Ireland (91 percent), Portugal (78 percent) and the Netherlands (67 percent).

·  59 percent of respondents report rising turnover over the past 12 months, while another 28 percent said that turnover remained steady.

·  72 percent say innovation is a key priority for the next 2 years, along with workforce education and training (64 percent) and diversification (50 percent).

·   63 percent of respondents feel the war for talent is their top business concern, up from 53 percent last year. 62 percent of respondents are also concerned about declining profitability, and 60percent are worried about regulatory change.

·   37 percent of respondents report increased international activity over the past 12 months.