An online version of a British newspaper summarizes a report issued by the office of the government responsible for gathering statistics. This office reported that family owned companies in the UK are less productive than non family owned ones. The office looked at 700 companies. It said the average productivity of a worker in a family company was about 36,000 pounds versus 53,000 for workers in other firms. The office blamed this on the fact that former companies did not have good management policies.
- The average worker’s output in a family owned business is much less than the average worker’s output in a non-family owned business.
- Non-family owned businesses focus on staff performance, setting targets, and promotions. Family owned businesses do not focus on things nearly as much.
- 3/4 of UK firms are family-owned, so the smaller amount of productivity is a concern for growth throughtout the economy.
“Companies with the founder’s family at the helm are on average 20pc less productive than other businesses, the Office for National Statistics said, which could be one factor holding back UK growth.”