Write a commentFamily businesses from the Newry and Mourne area can now access a new business support programme designed to increase the sustainability and survival rate of family run businesses in the South East Economic Development (SEED) region in Northern Ireland.
The Family Business Programme is part funded by Invest Northern Ireland and the European Regional Development Fund under the Sustainable Competitiveness Programme for Northern Ireland.
In Northern Ireland 74% of companies are family run, predominantly small companies employing less than 10 people, and they represent an extremely important core of the local economy.
Beyond the everyday issues of managing any business, which the programme will help with, family businesses face increasingly complex issues that affect not only the future of the business itself, but also that of its owners, their family and their employees. Always, the owner must reconcile their own and their family’s aspirations with the commercial goals of the company.
With only 3.2% of family businesses surviving beyond the third generation (BDO Report, The Contribution of Family Businesses in Northern Ireland, 2012), one of the biggest risks facing any family-owned business is the transition from one generation to the next. To manage this transition successfully companies need to explore options and to be open to challenge.
Firms that survive a change of ownership are usually those that have developed good plans, outlining how the succession will take place and what criteria will be used to judge when the successor is ready to take over the reins. Under this programme it is intended that an appointed business mentor - through providing relevant support along with a robust challenge function - will be to assist the family / family business to develop an agreed forward plan, which may need to address a range of business improvement / development issues, including succession.
When a family business is handed over to the next generation, this is the time when the survival of the business is at its most critical. Where there is a change of ownership of a family business, it is those businesses that have developed good plans that have the best chance of success.
Feedback from members of the Down District Council ‘Beyond’ business support programme and from other SEED councils’ Economic Development Departments has shown that a very significant proportion of the local businesses are family owned. These businesses have indicated they have concerns that they have no succession plan in place beyond the current generation of owners. There is a need and an appetite amongst businesses in both Down district and across the SEED region to adopt a strategic approach to growth and succession planning for their family run business.
Managed by Down District Council, on behalf of the SEED group of Councils (Ards, Armagh, Banbridge, Craigavon, Down, Newry and Mourne, and North Down) the SEED Family Business Programme is delivered by consultants FPM Accountants LLP.
Speaking at the launch of the programme at the Downshire Civic Centre, Downpatrick on 10 April 2014, Down District Council Vice-Chairman, Councillor Gareth Sharvin said, ”Small businesses make up 98% of all business in Northern Ireland, the majority of whom are family run businesses. A recent socio-economic profile commissioned by Down District Council confirms that business death rates have significantly increased. SEED Councils need to act, not to prop up failing companies but to identify and work with those family businesses who can, with appropriate assistance, develop resilience and manage their way forward in challenging times. This new Family Business Programme has been designed to meet that need.”
Mark Bleakney, Invest NI’s Southern Regional Manager, said: “The growth of family businesses is extremely important for the future of the Northern Ireland economy. Family owned or managed businesses face a unique set of challenges including establishing a clear business strategy, succession planning and developing management talent. This Family Business Programme will offer family owned or managed businesses located in the SEED region with the opportunity to improve their business performance.”
A total of 42 companies across the SEED region will be supported. Recruitment is taking taking place now. Interested family businesses should therefore contact FPM Accountants immediately to be considered for the programme.
Please contact Michelle Hawkins at FPM on 02830261010 or email m.hawkins@fpmca.com.
