Keeping It In The Family

Family businesses are a cornerstone of the UK economy, playing a vital role in driving growth, creating jobs, and fostering innovation. For example, data from the Institute for Family Business shows there are over five million family businesses in the UK, accounting for around 88% of all private-sector firms. These businesses generate more than £1.7 trillion in annual revenues and employ over 14 million people, making them a critical component of the nation’s economy.

According to the 2024 UK StartUp Awards, which attracted over 1,200 applicants, family background plays a significant role in shaping entrepreneurial journeys. Many entrepreneurs trace their ambitions to the influence of parents or close relatives who were business owners, demonstrating how exposure to entrepreneurial behaviours, networks, and resources from an early age can inspire and equip individuals for business ownership.

The study reveals that 45% of entrepreneurs have a family history of business ownership, highlighting the profound impact of familial experience. Among these entrepreneurs, 45% report their father as the entrepreneurial figure, 19% cite their mother, with others taking inspiration from extended family (18%) and siblings (17%). Entrepreneurial parents often transfer valuable knowledge, skills, and social and financial capital to their children, creating a strong foundation for pursuing entrepreneurial careers. Interestingly, the influence of family business backgrounds shows minimal variation across gender, technology sectors, regions, and age groups, suggesting that this factor is a universal driver of entrepreneurial intent.