Family owned businesses play a crucial role in the economy and our communities. Some of Australia's most successful businesses are family businesses. They are also some of the most enduring, over generations, building a legacy in name and value to the Australian community. And for some of Australia's largest businesses that once started out as a family business, their business success is also part of Australia's economic fabric.
Seven out of 10 businesses are family owned and 40 per cent are run by a couple. Many of Australia's family owned business are in the farming, hospitality, convenience and construction sectors, as well as professional services.
As if owning and running a small business isn't challenging enough, these challenges are magnified when it comes to family businesses.
"Their personal identity is often tied up with their family business, there's no switching off at the end of the day and they are often investing their energy, time, and personal funds, to make it work. Financial and emotional pressures are amplified when many have put their home on the line to build up their business. And often, the family dining table is the board table or work zone, impinging on any semblance of work/life balance, adding potential fragility to family dynamics and relationships," Mr Billson said.
"Australia is one of the few major economies that records and recognises the immense contribution of family members to a business, even when they might not receive a separate income for their endeavours. Many more don't record or are directly paid for the work they do in chipping in to help out the family business, and some aren't paid the market wage.
"In terms of workforce too, as we age, those in work associated with a family business are more likely to stay working, making up about 13 per cent of all workers aged over 70. Among those over 80, it rises to 24 per cent of all workers being a contributing family worker.
"We also see others who have retired from their own careers go to work in a business started by their children, and fill roles wherever needed often for little or no wage."
Family businesses are spread across many industries and vary in size. 25 per cent of contributing family workers are in agriculture, forestry and fishing. Family farms running sheep, beef cattle or grain account for two out of three contributing family members across the entire agricultural sector.
10 per cent of those working in a family business are in construction, with similar percentage in accommodation, food services and retail.
Succession planning is all the more paramount for family businesses.
"When business decisions are also family decisions there can be an added layer of emotion. What one family member thinks is best for the business may not align with what other family members envision.
"For the parent who may want to pass on the family business to their children, the next generation may not be interested or have career or business interests elsewhere and not necessarily aligned to the family business.
"There can be unique situations involving family dynamics and perception of equality when it comes to succession. And where family wealth is involved, there can be additional complexities to manage legal, tax and accounting implications," said Mr Billson.
"In meeting with a variety of business owners over the years, one consistent theme comes up when it comes to the next generation contemplating stepping into the family business.
"The young adult children of family owned businesses tell me that they don't want to enter the family business, often citing the lived experience seeing the dedicated efforts by their parents over the years. It's a little too close to comfort to have seen the highs and lows of running their own business."
Family businesses also take inspiration from future-proofing generational livelihood.
"Family businesses are deeply driven by family values and are often community champions. They sponsor local sports teams, help build community infrastructure, and establish charitable foundations that add value to communities.
"But for the families that have a go, their passion and drive is commendable. National Family Business Day is a great day to remember the entrepreneurial spirit of family business owners and celebrate their efforts and impact to our communities. But let's not only give recognition on this day but every day. Family businesses - we see you, we hear you, we celebrate you." Mr Billson said.
Mr Billson praised Family Business Association (FBA) for their continuous efforts showcasing and supporting the value of Australia's family owned businesses.
"FBA is uniquely focused peak body for family business and they help their members navigate the intricate juncture of family dynamics and business operations. They provide valuable support and insights for family businesses including succession planning, governance, financial management and strategic planning." Mr Billson added.
More information about ASBFEO is available on the ASBFEO website.
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