A research study carried out by Nyenrode Business University and RSM UK reveals that levels of confidence about the future are rising among family firms, despite the COVID-19 pandemic.

This study saw family businesses surveyed twice about how they expected the pandemic to impact on profitability, numbers of employees and revenues. The first survey took place during the early stages of the pandemic, in April, while the second was carried out in July – and the results revealed striking differences in their expectations for the future.

In the April survey, family businesses were anticipating losses averaging 36%, while the July survey found that actual losses were just 3% in comparison with 2019. Those who took part in the April survey also felt that they would need to cut employee numbers by 8.2% on average, but when the surveyors spoke to them again three months later, there had been an average workforce reduction of just 0.5%.

When it comes to profits for the year, family business owners in April were predicting profits to be 42% lower than the year before, but the second survey saw this revised to 5%. Furthermore, the follow-up found that 35% of participants were now expecting higher profits than last year.

Roberto Floren from RSM stated that the ability to make quick decisions, having financial independence and the flexibility of family firms made them better placed to cope with unexpected events. They are also able to benefit from specialist advice provided by a family business accountant in Goole or wherever they are based.