Family businesses: insurance and uncertainty

The family businesses have a fundamental impact in European economy, although it is not always recognized. It represents numbers above 55% of the business fabric and they are from different branches and can assume varied dimensions. Abundant confidence The familiar companies presented a highest evolution, and it is expected to be one of the biggest to the next 12 months. This allowed together with a positive socioeconomically ambient, the stimulation of the familiar businesses confidence relatively to the future. This became evident in strategic decisions on human capital level (Headcount increment). We also observe that, 54% of inquired increased their number of workers last year. Besides, we found that 64% of inquired people stated that the turnover increased in the last year comparatively with past values. Impulsing innovation The innovation keep being a huge preoccupation of European familiar companies. In this way, we verify that according to the survey conducted, the managers are determined to promote the innovation. The new market conditions and the new business models press the enterprises to adapt to this new stage, responding to changes and adversities in real time, simplifying the innovation process. However, this adaptation isn´t completely unexpected on business context, because, the familiar companies, have already contacted with different periods of business models changes, since that, this business (familiar) model is one of the oldest. This proves their capacities of resilience and persistence. It is not only the innovation that maters, but the strategic investments are also essentials. The innovation results of daily operations and not only through the I&D. In the future, it´s expected that the innovation stay on the top of expectations, being a priority to 24% of inquired people. Manage the challenges keeping the competitiveness Although we observe highest confidence levels, there are no doubt that challenges will arise. It´s important to take into account the competition, given that, the same is a quite “aggressive” actually. With the innovation, the quality increases and the error decreases. (intensifying the dispute for talent). This arises from the fact of incorporating new and non-traditionals and specialized functions on business environment. Potentialize the competitiveness in terms of digital economy is hard and complicated, being this talent fundamental. To conquer a place on business environment, the familiar companies adopt creative approaches to manage these talents, attracting them through the differentiation of the other competitors. Planning the uncertainty Not only the operational challenges disturb the entrepreneurs but also, the political uncertainty afflicts them, for example Brexit (only 10,9% took action to prepare themselves). To prepare the existent uncertainty, the enterprises started to take more conservature measures (postponing the expansion to other markets). Only 36% of inquired increased the exterior activities during the last year. For that, the solution goes through exploring alternative economical territories.