Business Development

Family-run businesses to benefit from Living Wage

Hannah Wilkinson | 22 January 2016 | 8 years ago

Family-run businesses to benefit from Living Wage
More than one-quarter of convenience stores are family-owned and operated

Family-owned shops could be the prime beneficiaries? of the increase in the minimum wage in April, according to a new report by business broker Christie + Co.

?The research entitled Is the National Living Wage creating National Living Rage suggests that as large corporate players sell units in response to the cost pressure, family businesses will be able to take over stores and run them more profitably.

?More than one-quarter of convenience stores are family-owned and operated, according to the Association of Convenience Stores and the authors suggest that the lower reliance of such firms on employees will allow owners of independents to expand as larger chains struggle.

?Christie + Co managing director Chris Day said: As clearly evidenced by the number of buyers registered on the Christie + Co website, there is a ready market waiting for such acquisition opportunities. Since the beginning of the year, we have seen increases of over 20 per cent in active potential buyers and over 40 per cent in unique users demonstrating the pent-up demand for independent businesses.

?the anticipated level of returns and motivation factors of private buyers will allow them small businesses to see opportunity where corporate operators see unsustainable businesses.

?Family businesses generate a quarter of the UK’s GDP. The importance of such firms to the UK economy was highlighted by Sajid Javid in a speech he made to parliament in November 2015, when the business secretary said: I grew up above my family’s business, and Ive seen for myself how such companies are a vital part not just of our country’s economic success but of the communities they do much to serve. They Small firms deserve the Government’s support.

?Additional research published by American Express last year in 2015 revealed that almost three quarters of family-hiring entrepreneursthink working withloved ones is good for business and 16 new family firms open every day.

?In our family business series last year many of those we spoke to agreed that small family-owned firms were well-placed to navigate business challenges which could cause more problems for larger firms.

?we control all decision making and how we invest in the business, explained Archie Hume, who runs A Hume Country Clothing.?With a small tight-knit team, we can be agile in our project work and what we prioritise. Decisions can be made quickly and action taken as we do not have to seek approval from layers of management.

?Family firms are not the only companies which stand to benefit from the introduction of a Living Wage. We recently looked at how micro businesses across a range of industries are likely to see improvements in staff productivity as a result of the changes.

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