Ireland’s taxation system was ranked as the number one concern of family businesses, with respondents calling for a more progressive tax regime that considers the longstanding economic contribution of the family business sector.
This is according to the first ever National Family Business Sentiment Survey from the Family Business Network and Smith & Williamson which reveals the unique challenges facing family-owned enterprises and how they can fuel a jobs-led recovery. The research involved online surveys and telephone interviews with family-owned businesses all over Ireland.
Nearly two-thirds of family businesses (63%) remain very concerned about Brexit on logistics and supply chains, while the cost of business insurance ranked the third greatest concern.
Despite 49% of family businesses feeling less confident about the current economic climate, the National Family Business Sentiment Survey shows that 58% of family businesses are likely to create new jobs within the next twelve months. But this growth is contingent on a supportive political and economic environment which backs family businesses to overcome the current challenges they face.
The survey also found that family-owned firms are concerned about safeguarding their family values and their employment legacy within their local community. Eighty two percent of respondents have stated that support for next generation family members is important to them.
Nearly half (48%) of the businesses surveyed are seeking to prioritise professional training and mentorship, with many worried that the tax system for transferring family businesses from one generation to the next is a significant obstacle.
Commenting on the survey, Executive Director at Family Business Network, John McGrane said, "The survey showcases the resilience and adaptability of Irish family businesses thriving through the generations. Many family businesses, however, feel their contribution is overlooked by the Government. Changes to Capital Acquisitions Tax and Capital Gains Tax as well as the reform of the insurance sector can help to ensure the survival and success of family firms as they navigate Brexit and COVID-19."