The North America Family Business Report 2023
The North America Family Business Report 2023
Report Highlights
Brightstar Capital Partners and Campden Wealth issued the North America Family Business Report 2023, highlighting opportunities and challenges of family businesses today. The report surveyed more than 100 family businesses with average annual revenue of close to $350 million. Among the major concerns for family businesses leaders are succession planning, risks of the current economic environment, family conflict and communication, technology investment, risk management, governance, cybersecurity, and ownership structure.
- The majority of family businesses (61%) do not have a written, formal succession plan in place
- A majority of respondents (60%) are worried about a market downturn, with higher inflation and rising interest rates being particularly concerning for 75%
- When Next Gens are involved, their overarching goal is to protect and sustain the family business, according to 81%
- Six in 10 family businesses surveyed (62%) believe that the current economic environment poses the most significant systemic risk to their operations over the next 12 months
- A vast majority of respondents (84%) declare that their family business is embracing new technology, with 49% believing artificial intelligence will be most impactful
Key Takeaways
North American family enterprises are undergoing a major wave of succession, but few are prepared. A majority of family businesses surveyed (61%) do not have a written, formal succession plan in place, emphasizing the lack of preparedness when handing over control to the next generation.
Family businesses believe growth will slow in the next 12 months. Against the backdrop of a potential recession, six in 10 family businesses surveyed (62%) believe that the current economic environment poses the most significant systemic risk to their operations.
