Irish family businesses report higher levels of sales growth compared to their global peers, and have greater growth ambitions for 2024 and beyond, according to PwC’s 2023 Family Business survey. 

PwC’s ‘Transform to Build Trust’ report, which polled over 2,000 Irish and global family businesses across 82 countries, revealed double-digit sales growth of 55% for Irish family businesses in the last financial year, up from 22% in 2021.

 Irish family businesses also report higher levels of sales growth in the last financial year compared to global peers — Ireland 84% v Global 71%.

However, like their global counterparts, the survey does point to Irish family businesses needing to be more proactive in building trust with certain stakeholder groups — they need to mind the trust gap. 

For example, 89% of Irish family businesses believe that it is essential to be trusted by customers, but only 68% report to be fully trusted by this stakeholder group. 

Some 76% believe that it is essential to be trusted by their employees, but only 57% report to be fully trusted by them. And while trust levels between family members is quite high, still around a fifth of Irish respondents admit that trust is low between certain types of family members; i.e. between Next Gen family members and the current generation, between family owners and non-family management. 

John Dillon, leader, PwC Private, said: "Irish family businesses are confident about the future and have proven that they are resilient, having the ability to deal with change in a challenging landscape." 

To continue this trajectory, firms will need to focus on continuing to build trust across all levels and amongst all stakeholders in the business. 

"There is also clear evidence from the survey that being advanced in having an agreed and well-communicated ESG strategy correlates strongly with success and other positive attributes such as improved financial performance. Irish family businesses have a great opportunity in this area. Businesses that are advanced in ESG strategies have an opportunity to gain a competitive advantage in the face of continued disruption." 

Digital capabilities are critical to supporting governance structures and managing real-time information that feeds into decision-making processes. However, only four out of ten Irish respondents stated that they have strong digital capabilities. Irish family firms likely to have more women on their Boards than global peers, with the research highlighting that having a more diverse Board is strongly associated with stronger financial performance. 

Mairead Harbron, partner, PwC Private, concluded: "While market pressures and rising costs mean survival is a key priority for Irish family businesses, our latest data shows that those family businesses which are focused on digital transformation and diversity are reaping the rewards. Irish family businesses have more to do on digital transformation and diversity. 

"Now more than ever, building competence and achieving strong financial performance are linked to corporate responsibility. The message is clear, for family businesses to survive, they must transform. And that transformation needs to be now."