Family firms are the engine room of the Scottish economy and they continue to contribute significantly to employment, economic output and the creation of wealth, on top of making a real impact on the communities in which they are located.
Family Business United published the Top 100 Scottish Family Firms 2020 report this month. The report looks at businesses with a turnover in excess of £20million annually and is based on the most recent accounts filed at Companies House. Although many of which were filed prior to the onset of the pandemic, the results stand for themselves.
The 100 large businesses which are the focus of the report showed record figures since the first report was produced back in 2017 and this research proves that family firms are major employers, revenue generators and contributors. Not only do the leading family firms in Scotland provide a large number of jobs, they are investing in their staff. Over the four years this report has been compiled, the total employed by the Top 100 Scottish family firms has increased by 22,820 (25.8%). Despite the prevailing uncertainty at the time of many of the firms reporting their results, the Top 100 have remained profitable, generating £1.4 billion, which is a return of 6.2% on total turnover, demonstrating their importance, especially as they will undoubtedly be a key driver of Scotland’s recovery from the pandemic.
Some more of the key findings from the 2020 report include:
- Top 100 Scottish family firms generate £22.6 billion every year.
- Top 100 Scottish family firms employ over 111,000 people.
- The key family business employers are in the Food & Drink, Property & Construction and Motor Retail sectors
- There is a broad geographical spread of leading family firms but Lanarkshire, Stirlingshire, West Lothian, Mid Lothian and Banffshire account for over 77% turnover of the Top 100 Scottish family firms.
AAB is delighted to have been a key partner in this project, with Lyn Calder, Managing Partner – Edinburgh and Head of Family Business at AAB actively involved in helping pull the report together.
Paul Andrews, Founder and CEO of Family Business United said, “This research is important as it proves that family firms are truly the engine room of the Scottish economy and contribute significantly to the prosperity of the nation. There are clearly some large family businesses in Scotland that are significant employers and major contributors to the economy, locally, regionally and nationally and deserve to be recognised for their endeavours. Family businesses are integral to communities the length and breadth of Scotland and with the leading firms in a strong position before the onset of the pandemic they will undoubtedly have an important role to play in the recovery of the economy too.”
Lyn Calder, Managing Partner at AAB’s Edinburgh office shares, “We all know too well of the challenges businesses have had to face over the last 12-18 months, including family businesses. Not only from the pandemic but other factors such as Brexit and general economic uncertainty have also posed new challenges for family businesses. Despite this, the report reflects positivity in showing resilience, innovation and new ways of working.”
You can read the latest research conducted by Family Business United, sponsored by Carbon, here.
Find out more about AAB’s family business team here.