Accounting, tax and advisory firm KPMG has released a survey showing that 8 out of 10 Canadian family business owners have a succession plan in place or plan to pass the reins to the next generation.
“We are seeing a demographic shift: Ownership of family businesses is shifting to a younger generation of leaders due to the increased reliance on digital technologies resulting from the pandemic,” says Yannick Archambault, National Leader of KPMG’s Family Management Office in Canada , from the print publication.
He adds that “technology is fundamentally changing the way companies do business” and that “current leaders are increasingly looking to the next generation to get things done.”
The survey conducted in collaboration with the STEP Project Global Consortium also revealed that family businesses will have a greater need for transformational leadership in the years to come. In fact, 7 out of 10 leaders surveyed believe that future success will require a new generation of more tech-savvy leaders.
Occasions
Furthermore, a significant number of family entrepreneurs also see opportunities for growth, even in a context of economic slowdown.
71% of them plan to raise capital, 59% plan to acquire a new business in the next 3 years, and 64% want to expand their businesses outside of Canada.
Conversely, 26% of respondents plan to sell their business in the same period. This would largely be explained by a lack of interest from the next generation in the existing family business.
More numbers
According to the KPMG survey, 70% of Canadian family businesses say they have an environmental, social and governance strategy. 69% believe this program has a positive impact on bottom line.
We also note that 66% of companies say the desire to increase engagement in this area comes from the next generation.
“Women in family businesses don’t wait for the environment around them to change,” adds Dino Infanti, national leader of KPMG in Canada. As transformational leaders, they represent the changes they want to see in their business, family, and society.” (NP)
