This report quantifies the importance of family business to the UK economy. It begins with an analysis of the sector based on the most recent available data (for 2018). We also look at SME family businesses’ performance expectations as reported in the Department for Business, Energy and Industrial Strategy’s (BEIS) Small Business Survey (SBS), and their strategies for the future – including new evidence on their investment in research and development (R&D) and innovation activities. The study also reviews the challenges they are expected to face.

It should be noted, however, that the BEIS survey data used in our analysis was conducted between July 2018 and January 2019, over a year before the coronavirus lockdown measures were introduced on 23 March 2020. We therefore conclude this report by discussing how the family business sector has been affected by the pandemic. While government measures to tackle the pandemic in the UK are still in place, this can only be a very preliminary analysis pending the emergence of new data on the impact of the pandemic on the UK business sector and family firms in particular.