Family firms in Australia embrace tech for growth potential

A new report on the performance of family businesses in Australia has been released, highlighting their technology adoption and commitments to growth despite current challenges.

According to the "Family Business Barometer" survey conducted by Family Business Association and Pronto Software, family businesses in Australia are demonstrating significant investment in technology, with over 55% of respondents indicating active acquisition of new technologies. This trend showcases the sector's efforts to remain competitive and adapt to evolving market conditions.

The report focused on a diverse range of companies within the family business sector, which encompasses small, medium, and large-sized enterprises. It identified that nearly half of the respondents (48%) cited the future vision, goals, and strategy of their companies as their primary concern, while 54% prioritised financial security for future generations. These concerns underline the sector's dedication to long-term thinking and strategic planning.

Catherine Sayer, Chief Executive Officer of Family Business Association, underscored the importance of family businesses within the Australian economy. "Family businesses make up 70% of businesses in Australia and need to be represented at the policy decision-making table. Their strength in long-term thinking and building their balance sheet resilience to navigate the peaks and troughs of the economy also sets family businesses apart from other sectors," she stated.

Chad Gates, Managing Director of Pronto Software, remarked on the sector's proactive stance towards technology adoption. "Although the economy has presented challenges, it's positive to see over half of survey respondents investing in new technologies, even during economic downturns. This is smart business, as it ensures you're ready to accelerate when things turn around," Gates commented.

The survey further revealed that 47% of respondents are focused on enhancing business efficiencies and operations, while 37% are concerned about succession planning complexities. This indicates a strong emphasis on organisational improvements and future sustainability.

The report also highlighted current challenges such as external economic factors, cost of labour, and cash flow difficulties. However, Sayer noted that family businesses are equipped to handle these adversities due to their "strong family values (73%), dedicated team of employees (68%) and customer loyalty (56%)." She emphasized the sector's integrity and commitment to quality as factors that engender consumer trust and preference.

"With a unique set of needs, the voices of family businesses need to be heard - for their success directly impacts half of Australia's population and the national economy," Sayer stated, advocating for their representation and support in policy decisions.

Gates further noted the importance of strategic planning in technological implementation, stating, "To successfully implement and integrate technology, it's essential to have a strategic plan that details digital adoption. Businesses that overcome these challenges will reap the rewards."

The report offers insight into the priorities and challenges faced by the family business sector, a major employer in Australia, and points towards a path of innovative adoption and strategic planning for future growth and resilience.