A significant transformation is on the horizon for Canadian family businesses, signalling an era of change and new thinking. With the next decade set to witness the largest capital transfer in Canadian history, today’s decisions will be pivotal in shaping the longevity and future of family enterprises nationwide, says Family Enterprise Canada.
Family Enterprise Canada
“The next 10years in Canada are set to mark an unparalleled chapter in the realm of family businesses,” said Olivier de Richoufftz, General Secretary of Family Enterprise Foundation. “As 60% of family enterprises prepare for an ownership transition, nearly 40% of the next generation is poised to lead these legacies. Yet, of this wave, only 47% are projected to remain entirely within the family. The choices made today won’t just affect immediate succession; they’re forging the future and legacy of family businesses across Canada.
“Family businesses have a diverse footprint in Canada, ranging from agriculture to retail, and predominantly operating in small to medium scales. The Prairie provinces stand out, with a high prevalence of family-owned ventures due to agriculture’s significant role. Moreover, sectors like service, hotel accommodations, food services, and fisheries see a vibrant, sizable family-owned business nationwide.”
The organization said family-owned businesses form the foundation of the country’s economic structure, with 99% of Canadian employers categorized as small to medium-sized businesses and the majority being family-owned. These enterprises represent 63% of all private sector firms that play a pivotal role in national economic output, generating 49% of Canada’s private sector GDP at $574.6 billion.
Their influence also extends to the job market, employing approximately 6.9 million Canadians. To put this into perspective, family-owned businesses directly supported 37.4% of Canada’s entire workforce in 2017 alone, significantly shaping Canada’s economic landscape, it said.
The upcoming “Families Summit of Minds,” conference is set to bring the world’s foremost experts in family business to guide business owners and their families on the challenges and prospects of family enterprises in a rapidly evolving global landscape.
“In the world of family business, just as in politics, there’s a delicate balance to strike. We must honour our long-standing traditions and the core values that have steered us to success. Yet, we also have to be agile, recognizing when it’s time to embrace change and modernize for the future,” said Lisa Raitt, co-chair of the Coalition for a Better Future, former Deputy Leader of the Conservative Party, and keynote speaker at Families Summit of Minds. “Some families manage this succession planning better than others, but every business needs a roadmap for success for the coming change.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list)
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