The Oxford Economics for the Institute for Family Business (IFB) Research Foundation has released the UK Family Business Sector 2017-18 report revealing that family run businesses contribute to one quarter of the UK Gross Domestic Product (GDP), in which its Gross Value Added (GVA) has increased by £100 billion since 2010 to £519 billion. The GVA of family-run farms totaled to an attractive £15 billion for the UK economy.

The UK Family Business Sector indicated that family businesses demonstrate optimism, with an ambitious plan for growth as they earn more than £1.4 trillion of revenue per annum.

A family business is considered to have less than 250 employees owned by one or more family members and larger businesses having more than 249 employees and 25% of its share held by a UK family. Such businesses has dramatically increased by 35% since 2010 as there are now more than 4.8 million in the private sector comprising 87.6% of all private sector firms in the UK. In the agricultural sector, 151,000 businesses are family run and they provide 76.5% of employment in the sector.

The UK economy largely benefits from family businesses which hire millions of workers and generates a quarter of UK’s economy to provide 20% of the government’s revenue per annum. The size of employment at family firms and their contribution to UK GDP have risen by 25% since 2010 and further contributed £149 billion in taxes to the government in 2015/2016 either directly or through employment. A quarter of UK’s economy and 20% of the government’s revenue per annum, are provided through family run businesses.

Real estate, renting and businesses services account for 25% of all family firms, construction takes 2^nd place accounting for 18.9% and transport and storage services ranks 3^rd, taking up 12.2% of all family firms. Wholesale and retail businesses takes 4^th and employs more than 2 million people. Moreover, half of the country’s hospitality firms are family run with more than 153,000 hotels and restaurants combined. Family run businesses employ as many as 12.2 million people in the UK.

The new report sheds light on the vital role that family firms and businesses in the UK take part in to create a successful economy. “Family run businesses are the backbone towards the UK economy,” said Elizabeth Bagger, IFB Executive Director, “and the government’s new Industrial Strategy, will further support family-owned businesses to ensure continuous growth and prosperity.”