The 7th Annual European Family Business Barometer recently published findings on owners, next generation and senior leaders, published by KPMG Enterprise and European Family Business (EFB). The results found that businesses in the UK and Europe must invest in business innovation and become more ‘agile, innovate faster and attract and retain top talent’ BQ Live reports. Their Key Findings are as follows:
- 68% of UK respondents report that they are confident or very confident in their family business’ economic prospects over the next twelve months.
- While overall confidence is up across Europe, the UK was a notable exception, with confidence dropping from 83% in 2017 to 68% this year. Despite Brexit negotiations ongoing in the backdrop, many UK family businesses continue to remain confident but are looking to the future carefully.
- Improving profitability (67%); increasing turnover (36%); and attracting new talent (23%) are the top three priorities for UK family businesses over the next two years.
- The increased cost of labour (56%); political uncertainty (53%); and war for talent (44%) are the top three concerns for UK family businesses.
- International expansion is being postponed; 42% have postponed international expansion and have deprioritised overseas activity for the next 12 months.
This data is supported by the R&D Tax Credits Statistics, which showcase business innovation, with a huge growth in ROI for investments; as many of the highest claiming industries coincide this data with growth on continuing to put cash claimed into people, equipment and continued innovation.
“Embracing Innovation” has proven to be a top contender in the growth of the most competitive companies and sectors across the UK. Businesses, going forward, must invest in innovation and people in order to fuel growth in the future.
The Head of Family Business from KPMG Enterprise commented:
“Family businesses are placing technology and innovation at the heart of their strategy. Confidence remains high but has suffered as a result of economic uncertainty, which makes having a contingency plan in place and being agile to change essential for the health of a business.
“By taking a wait-and-see approach to international expansion and increasing focus on improving technological capabilities, firms have measures in place to help mitigate the headwinds likely to be felt as a result of Brexit. What they need now is better access to skilled people to help make this happen.
“While businesses of all types are facing challenges, the entrepreneurial success of family businesses is often overlooked. To have one successful business within a family is already an achievement – but we’re seeing something special when success spans over four or five generations. Family businesses know how to endure. They’ve weathered generations of economic ups and downs, and by turning their heads to technology and innovation in more uncertain times, they’re staying true to form – diversifying and changing course to keep ahead of the competition.”
You can find the whole Barometer Report here.
Earn Rewards for Innovation From HMRC:
Although the pressure is on to start innovating bigger, better and faster, there has been immense recognition for the time, stress and money that goes into business innovation. HMRC know that with innovation, comes uncertainty and that potentially, not every project is going to go to plan.
Under the R&D Tax Credits initiative, you can claim back a percentage of the money you’ve spent on bringing new ideas to life; even covering expenditure such as salaries, travel costs, equipment and much more. Not only that, but even projects that have been shelved or were unsuccessful can be covered under the initiative. Why would HMRC give money away? The answer is simple, the initiative supports businesses who are working towards boosting the economy.
Rewards claimed through the incentive can be spent on putting a business back into a cash positive situation, corporation tax, new staff and, of course, further Business Innovation projects.