Family SMEs in the UK: Latest findings from the Small Business Survey 2024

Family‑owned firms make up the backbone of the British economy. The Family Business Research Foundation’s latest State of the Nation report estimates that there were about 5.13 million family businesses in the UK in 2023—more than 93 % of all firms and roughly 1.05 million with employees (Cebr and FBRF, 2025). The report estimated that family businesses generated around £2.8 trillion in turnover and £985 billion in gross value added (GVA) in 2023, providing 15.8 million jobs and paying around £401 billion in wages (Cebr and FBRF, 2025). Such firms were estimated to contribute about £422 billion in taxes in 2023, accounting for over half of private sector employment in the UK. These figures underline the economic significance of family‑run firms and why it is important to monitor the demographics and performance of this critical part of the UK economy.

The UK Government’s Longitudinal Small Business Survey (LSBS) is the main evidence base for understanding the prevalence and characteristics of family owned small and medium‑sized enterprises (SMEs). This paper summarises the latest findings from the 2024 LSBS on family SME employers, drawing on data published by DBT in September 2025, together with fresh context from the FBRF’s 2025 sector report. Section 1 of this paper summarises the 2024 survey and methodology. Section 2 explains how family businesses are identified in the LSBS. Section 3 shares the latest evidence on how common family ownership is among SME employers, and also looks at the changes in prevalence of family ownership over recent years. Finally, Section 4 presents updated evidence on the prevalence of family ownership and management, and how family ownerships among SMEs varies by firm size, sector and UK nation. All data are weighted estimates unless otherwise stated.