New research has revealed that a family business is far more resilient in the long-run than non-family companies.
The study, conducted by Credit Suisse and Ernst & Young found that 60 per cent of all family businesses had grown by at least 5 per cent, with their goal for more long-term investment, so that they could pass their business along the family.
Family businesses also tended to focus on product quality, rather on a profit drive.
Michael O'Sullivan, head of portfolio strategy research at the private banking arm of Credit Suisse told campdenfb.com: "The family business model... is not only proving to be a vital engine of economic activity, but also the antidote to some of the structural failings uncovered by the financial crisis."
The Eurozone crisis also wasn't as big a problem to family businesses - with only 15 per cent saying it was a concern. The credit squeeze didn't bother them either with most saying credit accessibility was the same now as it was before the economic crisis began.
Richard Kersley, Head of Global Research Product a Credit Suisse Investment Banking told sacbee.com that now was the perfect time to put the spotlight on family businesses as their recent performance has been so impressive. He said this was further shown by the Credit Suisse Family Business Index outperforming the rest of the market in the last 5 years by 8 per cent.
The research was posted in the company's report 'Family business: Sustaining performance'.
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