Family ties bring more stability in tough times

Jun 24 2010 by Andrew Hebden, The Journal

FAMILY-RUN firms could be well-positioned for growth in the recovery because of their financial prudence and strong sense of customer loyalty.

That was the prediction from the chairman of one of the region’s largest private businesses, who is to spearhead the organisation fighting the corner for family businesses in the North East.

Mark Squires, chairman of Newcastle-based car dealership group Benfield, has been appointed regional chairman North East of the Institute for Family Business (IFB).

The national organisation previously had a joint chapter covering the North East and Yorkshire but the two areas have now been split.

Mr Squires said he was delighted to take up the role and help support other family-run firms in the region.

Some of the region’s best known businesses including Barbour, Fenwick, Ringtons and Benfield are family-owned firms. Others, such as Greggs, have grown out of family-owned enterprises.

Mr Squires said that family firms make up an important part of the North East economy and many face similar challenges on issues such as succession planning.

“Family businesses play such an important part in our economy, accounting for some 65% of private sector enterprise and 40% of private sector employment,” he said.

“Family businesses are the cornerstones of the economy in many respects. They need to be supported effectively by an organisation that represents them, fights their corner and advises them on those areas where family companies need help to grow and prosper.”

Mr Squires said Benfield had “benefited immensely” from membership of the IFB. And he said it was an ideal time for other family businesses to do the same.

“We have got a lot of family businesses up here who should take great pride in and celebrate what they do,” he said.

“One of the strengths of family businesses is that they need to be stable and prudent financially in order to survive and then grow as we emerge from recession.”

He added that, as trust in business has been dented by the financial crisis and consequent recession, family businesses could have a natural advantage.

Many of them have long-established and hard-earned reputations with high levels of customer loyalty.

“They also have a natural sense of corporate social responsibility,” added Mr Squires.

Grant Gordon, director general of the IFB, said: “We are delighted that Mark, as the chief executive of one of the North East’s most successful and recognised family firms, has become IFB regional chairman.”

:: For more details about the institute, visit www.ifb.org.uk