The Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, is encouraging all Australians to celebrate National Family Business Day on Thursday 19 September.
"It's a great moment to reflect on the crucial role family-owned businesses play in the economy and throughout our communities and I commend the Family Business Association on this initiative," Mr Billson said.
"Think about the many farming, hospitality, convenience, construction and professional services businesses in your community and often it will be family owned and led.
"Some of our most enduring businesses are family business where leaders take an intergenerational view to their decisions and plans, are always thinking about their contribution to the local community and are often deeply values driven.
"So, let's take a moment to salute the entrepreneurial families who delight customers and enrich our communities and give them our support on National Family Business Day and all year round."
Seven out of 10 businesses are family-owned and 40 per cent are run by a couple team, typically a husband and wife.
"It's a big responsibility owning and running a small business and that is magnified when it is a family endeavour," Mr Billson said.
"When the dining table becomes the board table that can create a unique set of challenges.
"The families who have the passion and drive to run their own business invest their whole life. For many, there's no clocking off at the end of the day or on weekends. They are always going because they know the stakes are high.
"Typically, they have put their home on the line to build up their business, which amplifies the emotional and financial pressures.
"It is often the case when a family business faces difficult circumstances, other family members pitch in - all hands-on deck."
Family businesses come in all shapes and sizes and are spread among many industries.
Around 170,000 people are counted as contributing family members working in a family business.
About 25 per cent of contributing family workers are in agriculture, forestry and fishing. Family farms running sheep, beef cattle or grain account for two out of three contributing family members across the entire agricultural sector.
One in 10 people working in a family business are in construction with similarly high numbers in accommodation, food services and retail trade.
"Australia is one of the few major economies that records and recognises the immense contribution of family members to a business, even when they might not receive a separate income for their endeavours," Mr Billson said.
"As we get older, those who stay in the workforce are increasingly likely to be associated with a family business."
About 13 per cent of all workers aged over 70 are working in a family business. Among those over 80, it rises to 24 per cent of all workers being a contributing family worker.
Mr Billson said one of the biggest challenges for family businesses is succession planning.
"Those who have created a family business hope to pass it on to the next generation," he said.
"How to balance variations in passion and contribution across siblings, reward the earlier generations for what they have built and navigate differences in aspiration and vision across family members are part of the tricky path of succession.
"For the parent, passing the business onto the kids can be an ideal way to end their business journey but sometimes the next generation are not interested or have developed skills and interests not necessarily aligned to the family business.
"Every family is different and succession planning needs to be customised. Usually, a 3-5-year plan is recommended by the experts, but some will have a longer horizon while for others fate may force immediate transitions.
"In some families it will be smooth sailing, but we know that family dynamics can be challenging and for others it may be complicated, fraught and a highly emotional process.
"An independent, trusted adviser can moderate this process. It is also important to understand the accounting, tax and legal implications."
Mr Billson praised Family Business Association as the uniquely focused family business peak body that helps its members navigate the nuanced intersection of family dynamics and business operations, including succession planning, governance, financial management and strategic planning.
ASBFEO Contact: 0448 467 178 / [email protected]
More information about National Family Business Day.
