A new report from KPMG Enterprise and the global Project STEP Consortium shows that because of their dynamics and structure, family businesses have responded more resiliently to the initial shock of the pandemic. They have been able to adapt and reposition themselves to seize new business opportunities.
“The essential role of the family has made it possible to preserve both the financial investment and the family legacy. The long-term vision and other significant strengths have enabled many family businesses to gain a competitive advantage and the ability to drive economic growth into the future,” said Mary Jo Fedey, national leader for KPMG Enterprise The skills and prospects of a younger, more tech-savvy generation have played an influential and critical role in the company’s strategic reorientation.
While most family businesses experienced a decline in revenue, 17% of Canadian respondents saw an increase in their revenue, exceeding the global average (9%). Companies that benefited from the acceleration of technology and the digitization of their business model recorded the largest increase in revenue.
The report also highlights the general strategies that family businesses have adopted in response to the pandemic’s impact on business and family wealth. Either turn business, social responsibility and patience. Business transformation has been a priority for Canadian companies, with a strong focus on long-term strategic planning.
“Family business owners tend to look beyond short-term profit and measure success by being able to maintain and protect business continuity and succession plans for the next generation,” explains Yannick Archambault, Partner at KPMG Enterprise.
Notably, KPMG Entreprise and the Global STEP Consortium conducted a confidential global survey of family business leaders in order to analyze lessons that can be learned from the measures they have taken in response to COVID-19. The data was collected between June and October 2020 and analyzed by business managers, consultants, and academics in early 2021. The team of researchers collected responses from nearly 2,500 family businesses, including 76 CEOs. Company in Canada, and more than 500 non-family businesses Companies from 75 countries, regions, territories and five total regions (Europe, America, Asia Pacific, Middle East and Africa).