The survey, based on the online responses from 878 questionnaires received from family businesses across 18 European countries, including Romania, shows that the outlook for family businesses remains positive with confidence remaining stable at 70% (compared with 71% in June 2014). However, as with the 1st and 2nd edition, decline in profitability continues to be the one of the primary concerns for family businesses (cited by 47% of respondents) representing an increase of 9% over the last twelve months.
„The previous surveys gave warning signs on employment and skills. This trend seems to have continued as challenges related to the ‘war for talent’ have been steadily growing and in this 3rd edition it has been flagged as the second most important challenge for respondents (42%); a jump of 6% since the last edition in June,” said Alexandru Massaci, Director Advisory, KPMG in Romania. In addition, the ‘cost of labour’ has risen rapidly to third place in the list of challenges facing businesses, with a swing of 15% to 29% in twelve months. Consequently, it is not surprising that 50% of respondents would welcome reforms in labour market regulation.
On a positive note, our survey indicates that family businesses are still continuing to grow. 54% of respondents are now reporting that their turnover has increased (compared to 44% in June 2014). In addition, 48% of respondents have increased staff numbers in the last six months, a rise of 8% since June 2014.
„The results of this third edition show once again that family companies are growing. However, as we saw from the last edition the pressures on profitability, the worrying trend surrounding the ‘war for talent,’ and the complexity surrounding employment are still present. This should act as a signal to policy makers that urgent action is needed,” said Roger Pedder, EFB President.
As Richard Perrin, Partner Advisory, KPMG in Romania, says: „In this third Barometer it is really encouraging to see that Family Businesses are consistently optimistic about their future despite the complex economic environment in which they operate. The research has demonstrated a steady growth curve over the last six months and respondents are actively planning new investments in the coming months. Nevertheless, they are again challenged on profitability and increasingly concerned about hiring and retaining best talents. These issues will continue to be at the top of the family business agenda as we move into 2015.”
