Almost two-thirds of family businesses have reported revenue
growth of at least 5% in the prior year outperforming many of their
larger rivals, research from Credit Suisse has found.

The research, conducted by the Credit Suisse
Research Institute and Ernst & Young, found that despite the
Eurozone crisis and slow economic growth, family businesses are
succeeding, while other businesses struggle to create revenue.

 

Family Index outperforms market by
8%

Credit Suisse said that over the past five
years its Family Business Index had outperformed the market by
8%.

It said that by focusing on long-term
investment family businesses were able to outperform public
companies.

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The research based on a survey of members of
the Family Business Network International (FBN-I) gathered from 33
countries, considers various types family businesses including
listed and nonlisted, and issues faced by the businesses, such as
sustainability and governance.

 

Six keys to family business
success

Credit Suisse said that its research shows
that there were six key characteristics that were responsible for
the success of family businesses over the last few years.

  • Performance and resilience –robust management
    of the Eurozone credit crisis leading to growth
  • A long-term perspective – which incorporates a
    ‘quality first’ approach
  • Sticking together – ensuring that business
    maintain family-governance
  • Sustainability – both financially and
    socially

 

Michael O’Sullivan, head of portfolio
strategy & thematic research at Credit Suisse Private Banking,
said: “The family business model, centered on a longer-term focus,
cohesion and awareness of sustainability issues, and an emphasis on
the importance of product quality, is not only proving to be a
vital engine of economic activity, but also the antidote to some of
the structural failings uncovered by the financial crisis.”