The 2023 EY and University of St. Gallen Family Business Index reveals that the largest family enterprises are outpacing global economic growth. These 500 companies collectively generate $8.02 trillion in revenue, marking a 10% increase since 2021.
The International Monetary Fund reported global economic growth of 6% in 2021, with forecasts of 3.2% for 2022 and 2.7% for 2023, family enterprises are growing nearly twice as fast as advanced economies and about one and a half times faster than emerging markets. The collective impact of family businesses on the global economy is so substantial that, if considered a national economy, they would rank as the third largest in the world, behind only the US and China.
Family businesses are a driving force behind the UK economy as well, playing a vital role in creating jobs, generating wealth, and fostering long-term growth. These firms, often deeply rooted in their communities, contribute significantly to the national economy every day. According to the IFB Research Foundation Report prepared by Oxford Economics in 2021, there are 5.3 million family businesses across the UK. Among the top 100 family-owned businesses, annual turnover exceeds £138 billion. Collectively, UK family firms employ 14.2 million people and contribute more than £200 billion in tax receipts annually, underscoring their critical role in the nation’s economic fabric.
Driving forces behind the success of family businesses
Discussing the values behind the long-term success of family businesses in the UK, Neil Davy, CEO of Family Business UK shared his insight stating, “Family businesses operate a model of sustainable and responsible business that has a deep sense of purpose, with people at the centre. They are driven by a desire to see their business succeed under the stewardship of the next generation and, because it is their name hanging over the door, have a strong sense of heritage and pride.
“They are also unhindered by anonymous shareholders primarily looking for profit maximisation and quarterly returns. That gives the owners of a family business greater freedom to invest, experiment, and take a long-term view than their counterparts in PLCs and private equity backed businesses.
“But above anything else family businesses are about the values of people, place and the communities they serve. It is a business model that others can and perhaps should learn from.”
Davy also shared how family businesses also face a unique set of challenges like succession. He said, “Questions like how the business is structured and managed, whether and how to bring the next generation into the business and, at times, how to convince the senior generation it is time to let go of the reins. Working with family members can be challenging too so managing relationships and dynamics amongst family members is also a serious consideration.
“But above all this, family businesses must have a stable and supportive policy environment that allows them to plan for the long term. It is fundamental in enabling them to draw up a strategy of when and how they can pass ownership to the next generation – either through a planned, phased succession or the death of the owner.
“The policy that allows family businesses owners to do this, called Business Property Relief, or ‘BPR’ for short, has been around for 50 years, so it is well understood by family business owners. It’s important that successive governments continue to support it. Failure to do so could be catastrophic to family businesses across the UK.”
He also shared that the reason behind the long-term success of family businesses lies in a stable regulatory and tax environment. It underpins their entire business model and, without it, they are unable to plan and make decisions that allow them to invest for the long term as part of a multi-generational strategy.
“But, policy aside, successful family businesses are rooted in shared purpose, and are led and governed by the values that the family owners hold true. This is what helps create, and sustain, the unique culture in a family business, and why it’s not uncommon to find employees in a family business working there not just for years, but for decades”, he further added.
South Asian businesses thrive in the UK
South Asian-owned businesses have long been a vibrant and integral part of the UK’s economic landscape. From bustling corner shops to high-end restaurants, these enterprises have flourished, contributing significantly to the nation’s economy while also enriching its cultural diversity.
As stated in the Grant Thornton report called ‘India in the UK: the diaspora effect 2.0’ published in March 2022, Indian entrepreneurship in the UK has a rich history dating back to the 1950s, when Indians began migrating to the country and contributing significantly to its economic development. Beyond holding important positions in government, academia, finance, and politics, the Indian diaspora has demonstrated a natural talent for business, with many establishing family-run enterprises.
This entrepreneurial drive is often attributed to innate trading skills and the determination to improve their lives. Another possible explanation is the career barriers that even the most accomplished Indian professionals faced upon their arrival in the UK, which led many to pursue business ventures. The first generation of Indian migrants set up successful small and medium-sized businesses, often employing members of their own community. Over time, many of these businesses grew into larger-scale enterprises, capitalising on the UK’s periods of economic growth.
Prominent Indian business figures in the UK today include Gopichand Hinduja & brothers (Hinduja Group), Lakshmi Mittal (ArcelorMittal), Lord Karan Bilimoria (Cobra Beer), Kartar and Tej Lalvani (Vitabiotics), Mohsin and Zuber Issa (EG Group), the Arora brothers (B&M Group), and Kuljinder Bahia (Southall Travel).
Through hard work and entrepreneurial spirit, South Asian businesses have become key players in sectors ranging from retail and hospitality to technology and finance. Discussing the key factors that contribute to the long-term success of family businesses, particularly South Asian businesses, Anuj Chande OBE, Corporate Finance Partner & Head South Asia Business Group, Grant Thornton UK LLP said, “South Asian businesses possess several key strengths that contribute to their long-term success. One of the most significant factors is the family's commitment to a 24/7 approach to business. Flexibility is another strength, as family members are willing to take on different roles as needed, stepping in for each other when required. A strong work ethic, deeply ingrained within the family, drives their determination to succeed against all odds.
“Financial support often comes from within the family or extended family, provided informally without the need for paperwork—cousins, for example, frequently lend money to one another without formal agreements. Finally, the implicit trust between family members enhances decision-making, allowing the business to operate with confidence and unity.”
A family business thriving across generations
One family business thriving in the UK is Colonel Saab, an Indian restaurant with roots in India. The inception of the business is deeply rooted in a vision set by Colonel Manbeer Choudhary and Binny Choudhary. Over three decades ago, they launched Jewels Hotel in Karnal, with a clear focus on hospitality that blends cultural heritage with modern comfort.
Their vision evolved when they saw the potential for large-scale events, particularly weddings, which inspired the creation of Noormahal Palace 15 years ago—a venue that offers not just luxury but an immersive experience of India’s royal heritage. Today, Noormahal Palace stands as one of the top destinations for weddings in India . The family’s journey also extended internationally with the launch of Colonel Saab in London, bringing authentic Indian cuisine and culture to the heart of the UK. Roop Pratap Choudhary is the second-generation involved in the business and discussed his role stating, “The journey has been one of dedication across generations, and my role has been to carry forward their legacy, while also innovating to meet modern expectations of luxury, service, and experience.”
According to Roop, the longevity and success of family businesses often come from a deep sense of commitment, continuity, and personal ownership. South Asian family businesses, in particular, often have a multigenerational outlook, with each generation not just inheriting a business but also a set of values and a vision for the future. He said, “For us, these qualities are tied to our South Asian values of resilience, respect for tradition, and a sense of responsibility toward the community. We emphasise integrity, personalised service, and a strong work ethic—qualities passed down through generations.
“Unlike corporate chains, family businesses are deeply connected to their communities, creating employment opportunities and contributing to the local economy in a more personalised and sustainable manner. For instance, at Colonel Saab, we bring the essence of Indian hospitality and culture to London, which not only enhances the dining experience for our customers but also promotes cultural exchange and diversity.
“Family businesses often prioritise long-term growth over short-term profits, and that stability can have a lasting positive impact on local economies by building strong, enduring relationships with both suppliers and customers.”
