Family businesses of all sizes make up 75% of all businesses in New Zealand, employing three-quarters of the country's workforce. They are uniquely positioned in the business landscape, with their decision-making processes and operational strategies often guided by a fundamental commitment to legacy and long-term vision.
"Across New Zealand, family businesses are deeply woven across all sectors. They are growing and preparing our produce, building our towns, caring for our waterways, driving our trucks, serving our communities, and showcasing New Zealand products and services both here and around the world," shared Nicole Pluck, New Zealand Manager, Family Business Association (FBA).
Family businesses are unique and plan for the long term
Family businesses are different. They balance family and business interests, plan succession across generations, and carry a profound sense of responsibility to employees and communities. Family businesses don't think in quarters, they think in generations.
"Family businesses think long-term and build their balance sheet to navigate the peaks and troughs of the economy," says Catherine Sayer, FBA CEO. They make decisions that prioritise stability, legacy and income for family members and the communities they support over short-term gain.
Family Businesses are Trusted
Family businesses are not only trusted by consumers, they are preferred. 70% of consumers trust family-owned businesses over non-family businesses, and 66% are willing to pay more for their products and services. Additionally, 54% of the workforce prefers to work for family businesses, reflecting the positive work environment and strong community ties these companies offer.
It’s a differentiator that sets family businesses apart and is a competitive advantage that should be leveraged.
Communication is key
One of the most common traps Nicole Pluck sees family businesses fall into is letting assumptions replace conversations. Whether it's assuming the next generation wants to take over, or that "everyone knows" the succession plan, these unspoken expectations can derail even the strongest businesses.
“Communicate, communicate, communicate,” says Catherine Sayer, FBA CEO. "Typically, family businesses don’t start early enough when it comes to succession planning and governance." The conversations that feel uncomfortable today become critical tomorrow, and delaying them only increases the complexity and emotional weight of these decisions, often leading to negative outcomes for both the business and family.
Strengthening communication now helps family businesses move toward smoother leadership transitions later. It also should not stop once the next generation step up into their new role. Keeping those conversations open between incoming and outgoing leaders provides confidence and clarity to staff and the family.
"To any emerging leaders looking to step up within the family business, it is vitally important to keep communication open with the previous generation, as they hold a wealth of knowledge and experience that has shaped the business into what it is today. At the same time, don't be afraid to bring fresh ideas to the table and make your own mark," shares Nicole Pluck.
"Your family values are the foundation, if you use them as guiding principles, they will help steer your decisions and set you on the path to long-term success."
For Family Business Owners and Leaders
We help members navigate the nuanced intersection of family dynamics and business operations, supporting both the wellbeing of the family unit and employees, and the success of the business through generations.
Supporting our family businesses keeps New Zealand going.
Learn more about membership options or email us.
