Business

Family business more optimistic about the consequences of the corona crisis

Of the same group of respondents, more than 65 percent say that in July they are more optimistic about the survival chances of their company compared to the situation in April 2020. In April 2020, the family businesses feared an average loss of turnover of 36 percent compared to April 2019. June 2020 the revenue loss is 3 percent compared to the same period last year.

In April 2020, the family businesses feared an average loss of revenue of 36 percent compared to April 2019.

In April 2020, respondents expected that the number of employees in the company would decrease on average by 8.2 percent compared to a year earlier. It now appears that the number of employees at the same family businesses has decreased on average by 0.5 percent compared to last year. The same goes for the profitability of the companies. In April, the family businesses still expected annual profit for 2020 to decrease by 42 percent, while in July that expectation was adjusted to a decrease of 5 percent compared to last year. In fact, 35 percent of family businesses expect annual profit to grow compared to 2019.

Lasting innovations

Roberto Flören, RSM professor of Family Business and Business Transfer, is pleased with the optimistic sound that emerged from the research. He says that family businesses are characterized by flexibility, financial independence and rapid decision-making: “This often results in better crises than non-family businesses. Winston Churchill’s statement “Never waste a good crisis” is certainly well spent on Dutch family businesses. For example, 61 percent of family businesses indicate that the corona crisis within the company has led to lasting innovations. “

Winston Churchill’s statement “Never waste a good crisis” is certainly well spent on Dutch family businesses

Government measures adequate

Government measures at the time of the corona crisis are considered adequate by the majority of family businesses. But the seriousness of the crisis is evident, as 13 percent of directors rate the measures as insufficient to support their company in the corona crisis.

Exactly half of the participating family businesses have made use of the NOW scheme 1.0. 48 percent indicate that the actual turnover realized is higher than the estimate previously made with the application. A quarter of the family businesses also expect to apply for the NOW scheme 2.0. A vast majority of family businesses support the conditions for NOW scheme 2.0 that no bonuses and dividends may be paid.

Risk spreading

Laura Bles-Temme, Head of Tax at RSM, said she was positively surprised and inspired by the results of the study: “The results show the drive of family businesses to keep their heads above water in times of crisis. This immediately shows the pride of the family business and is inspiring. Thinking in terms of opportunities instead of threats, radiating and giving confidence and continuing to innovate and do business in difficult times are the strengths of family businesses where we like to support where possible. “

About the RSM-Nyenrode Family Businesses Research Panell

In 2019, RSM and Nyenrode Business University started a research panel aimed at family businesses. Now 70 larger family businesses are participating in the panel and the number is steadily increasing. 86% percent of the respondents actually own the family business, while 9% of the respondents are family members of the owner.

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