Made in Group facilitated a roundtable discussion on family run businesses recently. 12 members of Made in the Midlands gathered at Cosmo Bonsor in Wolverhampton with Charles Addison, Managing Director the Made in Group, to discuss dealing with succession and more.
Made in Group, including Made in the Midlands and Made in Yorkshire, is dedicated to championing British manufacturing and providing industry with a platform to elevate their presence. With over 400 manufacturing members across two regions, from tier 1 suppliers to smes, the group also offers business leaders the opportunity to discuss relevant topics with fellow manufacturing professionals.
In the latest roundtable discussion, held on Thursday 30th June in Wolverhampton, Members of Made in Midlands came together to discuss dealing with succession, resolving similarities and family differences in business. Many of the business leaders who took part in the discussion lead family run businesses and most of which had been acquired from their parents or grandparents.
Charles began with an opening statement to get conversation on the topic flowing, he said: “85% of the members within the Made in Group are smes, many of which are family run. In family run businesses, there seems to be a theme of company’s failing when it gets to the 3rd generation. Why is this?”
Members of the roundtable agreed on the fact that many family run businesses fail at this stage due to lack of drive and the need for the third generation to drive the business forward. One participant said: “the first generation set up the business and the third generation is usually brought up comfortably.”
This was followed up by comments that the younger generation have little desire to progress and dont have the same passion for the industry that maybe the older generation does have. Participants agreed upon the fact that ‘flying the flag for industry’ and being proud of what is manufactured in the UK should be more instilled at schools.
Surprisingly, a few of the business leaders mentioned that they don't have the intention to pass business operations to their children, rather it will be left in the hands of a trusted employee. One participant said: “That is a sensible approach, leaving the operations to someone you know is capable of ensuring an accelerated return on your effort.”
The final topic of conversation focused on resolving familiarity with family members when it comes to professionalism in the workplace. Two of the participants mentioned that they found the dynamic in their businesses challenging due to entering as directors. However both agreed that when you are family with your co workers, you are more determined to make it work. One of the participants said: “It was difficult having the confidence to ask questions and challenge the answers when I took over the business, rather than accepting ‘that's how we do it’. Part of being a leader is building a capable team.”