Family Business Analysis Report France


In a family business organisation the members of the family related to bloodlines or by adoption or marriage are the ones who take decision regarding the business of the family. The members of the family in a family business have a simple goal for their organisation and hence they try to reach the goal through different approaches. In this assignment proper information has been provided regarding the family business of United Kingdom. The study provides the characteristics, success factors, challenges that the family business face in UK and the type of help that family business gets from the UK government.

Characteristics of Family Business in UK

In UK family business is like a trend which goes on in every occasion, the UK family business are located in every sector and it comes in different size of family business which includes, small, medium and large size business. In the UK family business there are values and moral which is passed by generation after generation. The owner of the family business in UK operates their business for more than generations and later they teach the entire business related thing to their children who are the future generations of the business (UK Family Business, 2020).

In United Kingdom the person who owns or builds the company has the majority of votes. The owner can pass the ownership to his other family members who can be their children or spouses (Josip et. al 2019). This way the family business continues after generation to generation. The sole owner of the company settles up the entire business and takes care of the company until his retirement. The knowledge is then passed to his/her children then the children passed the responsibility to their own children. The majority votes for the family member in UK business can be directly as well as indirectly. It is important in the UK family business for at least a single member of the family is related to the business. The member’s position can vary from the managing department or it can be any other field of that business. The individual member of the family who is involved in the family business are also sometimes becomes the part of the administration of the business.

In the United Kingdom some of the family business runs for more than a century, and still hold a success even after a century. The family business in UK is known for its longevity and its innovative way of marketing strategy. The business in UK varies from small size business to medium as well as large size business. In United Kingdom there are almost 18,000 large size and medium size business out of 4.8 million family businesses. The quarter of UK GDP is generated by those medium and large size businesses. In UK there are almost 50% of private sectors in which the family business employs more than 13.4 million people of the country (Collins et. al 2019). For over €182 billion tax has been paid by the family business sectors in the United Kingdom in the year 2017. Hence it can be said that in UK family business runs successfully and half of the GDP of UK is increased by family business every year (UK Family Business, 2020).

Factors of Success of Family Business

The family business in United Kingdom is passed from one generation to another generation and hence the business continues successfully over a longer period of time. The family business of UK runs a firm value by which they impart their business related knowledge to their generations. It is pride for the people of UK who are in family business to runs their ancestors business by indulging themselves in day to day activity of the business. The family business in UK creates a legacy for their business which continues by their future generations (Aronoff& Ward, 2016). The legacy is passed from one generation to another generation. Once the business is passed to another member of the family like spouses or heir then the new member or the new owner or administrator of the business takes the business in another level of success (UK Family Business, 2020).

The responsible capitalism is maintained by the members of the family in the family business. The person who is the owner of the business or who has just got the opportunity for continuing the family business try to subdue excessive debts and also maintains low staffs. By maintaining low staffs in the company they do investment for a long time and hence it results success. By the long-time investment and maintaining fewer employees it becomes easier for the family business companies to overcome with loss of the company. The family business firm gets the recovery faster as they maintain low staff and long term investment. Since the family business is a part of the community so the family business firms also helps the local communities and are committed to them. Being a part of local communities the family business companies becomes a part of all the local communities they take equal participation in all the local projects. The family business also helps their local communities in some of the projects and also Philanthropic activities are undertaken by the family business for their local communities.

The family business in UK focuses on the long term goal rather than the short term goal. The aim of the UK’s family business is to continue their business for a longer period of time. The members of the family do not focus on any other job opportunities and they give the priority to their own family business. Whether it’s a non- family or it’s a family staff both of them is committed loyally with the business. The non- family staff of the family business also put their efforts for the goal of the company. The members of the family of the family business are passionate in work (Laforet, 2016). The new generations of the family focuses on making the business more successful and profitable and taking the family business into a new level. The family businesses in UK does not give any priority to the short term goal of the business as it is less profitable, they try to achieve the long-time goal which is profitable as well as longevity. Hence the family business in UK is successful growing family businesses that is committed to their work and take it as a pride and takes the business into another height of success.

Specifications of family businesses in the hotel sector of UK

In the UK market there are various business operations and entities which are working with unique specifications and identity. The family businesses that are there in the market in regards with the hotel sectors have certain specifications and uniqueness in their operations and marketing. The hotel sector in the UK consists of various small and medium sized hotels and family owned restaurants. The specifications legislations regarding these hotels and restaurants are identified and highlighted in the following section:

  1. Facilities

The family owned hotels in the UK market is well known for their facilities. Unlike the star rated hotels the family owned hotels cannot provide such luxury however the small and medium sized hotels are observed to be quite capable of giving satisfactory and complaint free facilities in suitable budget to its customers. The hotels often observe and evaluate the requirement of the customers in order to assess the essential development in their structural facilities to provide better cosiness.

  1. Costs

The hotels often provide adequate services and facilities to the customers in quite reasonable price tag. The services ad facilities of the family owned hotels are quite budget efficient thus the customers who are looking for satisfactory hotels ain tight budget can go for the family owned hotels in the UK market. The foods and other services are also quite reasonable so the customer can order in the hotel within going for other options (Zellweger, 2017).

  1. Behaviour

The behaviour of the staffs and employees and also the owners of these hotels are quite acceptable as the customer often provided feedback regarding their generous behaviour and friendly chats. The customers are greeted with adequate manner and love are guided who every detailed query and questions that they have regarding the hotel services and facilities. This pleases he customers and they greet the hotel ratings with satisfactions.

  1. Services

As it is already mentioned that unlikethe star rated hotels the family owned hotels cannot provide such luxury however the small and medium sized hotels are observed to be quite capable of giving satisfactory and complaint free services to their customers in suitable budget to its customers. This often creates a market name and brand value for such hotel and the customer base keeps growing over the years. The customers are quite happy with their services and often refer the hotels to their known travellers (Aronoff, 2017).

Challenges of the Family Business in UK

There are certain challenges that the family business faces in UK which are mentioned below:

  1. Balancing of Work life and Family Life- The family business is passed from one generation to another generation. Though family business in UK has some success factor rate but the new generation of the family business forgets to balance their personal life as well as their professional life. Giving time to the business is equally important as providing time to their own family. Due to work pressure most of the new generations of family business cannot provide sufficient time to their family for which there is an imbalance in their work and family life (Rosa et. al 2019). The pressure comes from both the side from business as well as from family for which sometimes it ends up in separation with own family.
  2. Proper Planning- When the young generations enter in the business sometimes they are unaware of the circumstances that the business will face in the future. The young generation does not do any proper planning for the investment of the business as well as managing the work environment and its employees. Proper planning is required for the growth of the business as well as the future problems of the business. In order to avoid circumstances a proper planning is required for the execution of the business plans, managing the human resource department as well as launching or recreating the product of the company.
  3. Ambition Vs Loyalty- In UK there are many successful family business which is running by the new generations but some of the family business are facing problems regarding the new generations of the family. Some generations joins the family business happily and continue to pursue their career from the family business itself. Some generations consider the family business as a responsibility and they loyally overtake the business and works hard to make it more profitable. It is also seen in some cases that the new generations has some different ambition in life for which they think that family business is not an appropriate option for them as their career or success.
  4. New Generation problem- It is important to have patient for the growth of the family business. The older generation of the business were more logical and practical and they used to think many times before taking any major decisions for their family business. The younger generations or the New Generations of the family business are less patience people (Zellweger, 2017). The new generations of the family business does not think twice before taking any major decision for the company. Taking any quick decision for the family business company leads to major loss for the company.

Governmental plans for family business

According to the KPMG Enterprise Global Family Business Tax Monitor report the family businesses that operates in UK has some advantages and the tax rule is also favourable for them(International Cooperative, 2020). The government of UK has given some opportunities for the family business that is passed from one generation to other. The reports suggest that the UK government is in favour of the family business and provides relief in tax regime (Brown et. al 2017). The people who are having family business does not has to pay any extra tax for passing their business to the young generations. This tax regime in UK is continuing since last 34 years.

As compare to other nations like France, Paris, Spain and US the UK does not provide high tax for the family businesses.

Limitations that Family Business have in UK

There are many family businesses in UK which varies from small size business to large size family business. There are some limitations that the family business in UK has that are mentioned below:

  • Hiring Family Members pressure- It becomes difficult for the family business people in UK to deny the request of their own family members for joining the business in a specific designation. The member of the family who wants to join the family business might not have the enough skills to join the company. Not accepting the family members can raise conflict in the same family. Sometimes in it becomes very difficult to handle the pressure of the family member who is lacking in a skill for which he/she is asking for the same skill required position in the family business company.
  • Lack of Training- In United Kingdom family business it becomes difficult when training a member of the family is the priority. The non- family employees does not create any issues regarding training for their job roles but the family members do not take any training as they considered themselves that they are already aware of all the fields of their business. The importance of training is that the employees will be able to their respective job task properly (Parkin, 2020).
  • Managing Non-Family Employee for high turnover- One of the biggest problem in family business inUK is that they feel that partiality is made between the family employee and non- family employee of the company (Carey, 2019). The non- family members sometimes feels that best opportunity are provided to the family employee members rather than the non- family members of the company.
  • Growth Sources- When a new generation of a family member joins the family business in the UK, there are many things that he/she does not know. For instance it can be said that the new generations of the family business do not know to get the exact capital and resources of the business. That is why proper guidance is provided to the new generation of people who joins their family business. It has been seen in the UK family business that the new generation people who joins their family business for the first time lacks knowledge regarding the business or sometimes they lack education for their position. Hence it can be said that proper information and training is important for proper business execution (Parkin, 2020).


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Carey, M. (2019).Some ethical limitations of privatising and marketizing social care and social work provision in England for children and young people.Ethics and Social Welfare, 13(3), 272-287.

Collins, L., Seaman, C., Graham, S., &Stepek, M. (2019).Teaching family business: The case for a paradigm shift in UK business schools.Journal of Higher Education Policy and Management.

International Cooperative, K. (2020). UK tax regime gives UK family businesses a boost in succession through the generations – finds global report. Retrieved 25 April 2020, from

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Laforet, S. (2016).Effects of organisational culture on organisational innovation performance in family firms.Journal of Small Business and Enterprise Development.

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Rosa, P., Rautiainen, M., &Pihkala, T. (2019).The Methodological Challenges of Researching Family-Owned Business Groups.InThe Family Business Group Phenomenon (pp. 37-62). Palgrave Macmillan, Cham.

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Zellweger, T. (2017).Managing the family business: Theory and practice.Edward Elgar Publishing.

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