2017 NextGen Survey
Economy, customer mindsets and public policy seen as the most influential market catalysts for Irish family-owned businesses
35% of family-owned business successors think they will lose market share to new entrants
22 May, 2017 — Of the next generation of leaders of family-owned businesses interviewed by Deloitte, 56% of Irish businesses interviewed expect that the market in which they operate will face disruption in the next two to three years. 35% also expect to lose market share to new entrants. Deloitte’s NextGen Survey, looks at the opportunities and challenges that exist for family-owned businesses.
When asked about the catalysts of change within the market in which the business operates, economy (65%), customer mindset (60%) and public policy (46%) came out top from an Irish perspective. Interestingly, enabling technology was the third highest ranked catalyst from a European perspective at 54%. However, in the Irish market, just 44% of those surveyed noted it as a key driver of change.
“Irish family-owned businesses are showing increasing concern about the economy and new entrants to the market. Interestingly, far more so than other companies across Europe. With the uncertainty surrounding Brexit, and the global economy, Irish businesses may be more aware, and fearful of what the coming years hold by way of disruption. It’s crucial that these family-owned businesses have strategies in place to anticipate market disruption, be it internally or externally driven,” says Daniel Murray, Deloitte Ireland Family Business and Private Markets Leader.
The next generation
Just over half (56%) of Irish businesses surveyed say they have a strategy in place to anticipate disruption. However 50% see disruption as a normal part of the business cycle with 38% seeing it as an opportunity.
While 65% of Irish respondents said that they discuss the potential for disruption with family members, they appear to do so much less than their EMEA counterparts (72%). 41% of Irish respondents indicated that they only discuss disruption every 6-12 months whereas the majority of respondents in the rest of Europe discuss it at least once a month.
Fast and agile
According to the next generation, the biggest disrupting factor for family-owned businesses in Ireland is market disruptions (40%) with changes in family relationships at 17%. 24% of those surveyed across Europe however, said that changes in family relationships was the most disruptive factor. Again, this may be down to the impact Brexit is set to have on Ireland, and the uncertainty businesses face.
About the NextGen Survey
The NextGen Survey 2017 is a Deloitte initiative and was conducted by holding in-depth interviews/surveys with 268 successors of family-owned companies in the EMEA region (Europe, Middle East and Africa). Themes such as succession, disruption, growth and strategy were discussed. The survey was held from January to April 2017.
Issued by Murray on behalf of Deloitte
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