Succession remains a big issue for family businesses, with Ireland lagging behind other developed countries in tackling the issue, a survey by PricewaterhouseCoopers has shown.
According to the study, which covered 28 different countries and was carried out over the summer, two-thirds of Irish family businesses do not have a succession plan in place, compared with an average of 51 per cent in Europe and 49 per cent globally.
Moreover, 33 per cent of Irish family firms do not have a business plan in place, compared with just 25 per cent in Europe and the same number globally.
According to Dermot Reilly, business and wealth services leader at PricewaterhouseCoopers, the findings of the survey are reflected in the company's business experiences.
"Family businesses play a crucial role in our economy, representing over 75 per cent of all businesses in Ireland," he said. "It is interesting to note that the trends for Irish family businesses are broadly in line with their European and global counterparts with succession planning being the single greatest threat."
Mr Reilly said that Irish firms were becoming more aware of the issues facing family businesses and that when compared to six or seven years ago, the findings of this survey were positive.
Irish family companies are also optimistic about the business environment, with 71 per cent saying demand for products and services had grown in the past 12 months.
Just over half of the respondents are confident that the markets in which they operate will do better over the next 12 months, while 67 per cent expect to see an increase in the value of orders or contracts they secure over the next 12 months.
While Irish companies lag slightly behind their European and global counterparts in these areas, they are top of the table when it comes to being confident they can compete effectively with the market leaders in their sector, outstripping their European peers by 5 percentage points.
The survey also found that one of the other main challenges facing Irish family businesses is recruitment of skilled staff and product competition.
