How family enterprises are outpacing the global economy
Leading family enterprises are defying the odds and outpacing the global economy, with their impressive growth rates exceeding those of advanced and emerging economies.
According to the 2023 EY and University of St. Gallen Family Business Index, family enterprises on the Index generated $US8.02 trillion in revenue, representing a remarkable 10% increase from the 2021 index.
The report also reveals that family businesses employ 24.52 million people, and consumer-based family enterprises remain dominant in the 2023 Index, making up 40% in revenue and number of businesses.
Europe, the Middle East, India, and Africa (EMEIA) is home to over half (50.4%) of the world's largest family enterprises, with Europe leading the region with US$3.05 trillion in revenues, and Germany being the base for almost a third of the largest family businesses in the region.
India's Reliance Industries has climbed to 10th place, allowing the country to enter the top 10 largest family enterprises in EMEIA for the first time.
However, the report also shows that only 5.8% of family enterprises on the Index are led by women, with women holding just 23% of board seats.
Additionally, 76% of family enterprises on the 2023 Index are over 50 years old, with Japan's Takenaka Corporation being the oldest family enterprise on the Index, having been in business for 412 years. Despite these challenges, family enterprises continue to thrive and surpass expectations.