The family business sector needs formal representation in government – two states already lead the charge
Today is National Family Business Day, 19 September, dedicated to celebrating and recognising the hardworking families who employ 50% of working Australians, supporting communities, their employees and the economy.
We call on governments to acknowledge the strength of the family business sector and appoint dedicated ministers in each state and territory, and at a Federal level.
The Australian family business sector is strong, outperforming global peers according to an insights report by KPMG (June 2024):
- Business performance – Australia 77% vs global 71%
- Sustainability impact – Australia 80% vs global 78%
- Age of business – Australia 47 years old vs global 39 years old
Given the strength and success of the sector, Catherine Sayer, CEO FBA said it is time for dedicated ministers to represent family business’ needs.
“South Australia and Queensland are leading the charge and driving momentum – it’s time the rest of the country caught up and supports these critical businesses at the government level.
“Family businesses are the backbone of our economy and have a unique set of needs which need to be addressed to ensure continued success.
“As found in the 2025 Family Business Barometer Report, family businesses are focused on long-term goals – ensuring financial security for future family (54%), planning for succession (45%), and are planning to pass the business to the next generation (42%).
“Our Barometer Report points to strong opportunities for industry and government to collaborate with us to enhance the sector,” said Sayer.
The long-term success of family businesses in Australia is clear with 70% being handed down to the second generation and beyond. It is also clear people prefer to spend with family businesses with 70% of consumers saying they prefer to spend with them over non-family businesses.
“Dedicated Federal, State and Territory ministers would provide a government backed focus on the issues for the sector and help us to make an even bigger impact.
“This focus will benefit the economy and local communities with family businesses contributing $1b each year to philanthropic activities.
“As family businesses grow, so too does their commitment to their family values, employees, customers and wider community,” said Sayer.
________
The Backbone of Our Economy.
Family businesses are integral to Australia's economy, representing 70% of all businesses and employing 50% of the workforce. These businesses generate an estimated $4.3 trillion in wealth, highlighting their significant economic impact.
In New Zealand, family businesses represent a staggering 75% of all businesses, contributing approximately 65% to GDP, and employing around 75% of the workforce. Notably, the agriculture sector, which is pivotal to the nation's economy, is predominantly made up of family-owned businesses.
From small local shops to large multinational corporations, family businesses are the leaders, innovators, entrepreneurs, and job creators that keep Australia and New Zealand moving forward.
Community Champions.
Beyond their economic contributions, family businesses are also champions of community support and philanthropy. In Australia, family businesses donate around AU$1billion each year. They sponsor local sports teams, build community infrastructure for health, education and the arts, and establish charitable foundations, making significant contributions to the social fabric of our communities. These philanthropic efforts underscore the deep-rooted commitment of family businesses to giving back and supporting the communities in areas where they operate.
Trusted.
Family businesses are not only trusted by consumers but also 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.
