Law Society of Scotland
This information reflects the Society's web site at the date you downloaded or printed it and you should check at www.lawscot.org.uk to see if it is still current.

Family-run business initiative

The Society joined with the Scottish Family Business Association (SFBA) in a collaborative project to look at the distinct legal services that might be required by family-run businesses.

The aims of the project

  • to identify the level of awareness among the members of our profession of the existence of this large business sector and its needs
  • to increase awareness among our profession of the specific legal needs of the sector
  • to provide tailored training to our members to enable them to fulfill these needs, and therefore
  • to enable our members to take advantage of this new source of business to build up a stable, sustainable customer base to survive the recession, and 'recession proof' themselves in the future

Statistics: Family businesses

  • 45% of the UK's GDP is produced by family enterprises
  • 50% of the private sector workforce in Scotland is employed by family businesses
  • almost 70% of Scottish businesses describe themselves as family businesses, reflecting the European norm where 75% of businesses are family firms
  • 25% of the 100 largest businesses in Europe are family firms

According to SFBA, the leading authority of family businesses in Scotland, family businesses are the most prevalent type of business in Scotland (69% of businesses in Scotland describe themselves as family businesses).

Family businesses are of key importance to the economy in Scotland and beyond. They take a long term approach to building their business, not the boom and bust approach, which may have contributed to the current, and previous, recessions.

A significant problem for family-run businesses is that typically only 33% of family businesses survive to the second generation and 9% to the third. Better understanding between business clients, their solicitors and other advisers will help to reduce this difficulty and enable the sector to flourish.

Local Forum in your area for Family Business Advisors?

We are  developing a database of interested practitioners. If you have not already been contacted and are interested in being added to this list, please contact Laura Malcolm.

Continuing Professional Development.

A Family Business Conference is taking place on 11 May 2011 at the Dunblane Hydro Hotel. For details of how to book a place please contact Update.

Resources and collaboration

The Society is pleased to join with the SFBA as above and with the Society of Trust and Executry Practitioners (STEP) in working to develop  this area of expertise within the profession. Please visit the STEP website for further information regarding other support and resources available to this special interest group.

Links and information

Best practice governance for family businesses: a new dawn, by Ken McCracken, Journal Online, 9 June 2010.

History of the collaboration with SFBA

The initial consultation exercise to take the pulse of the profession and the family-run businesses closed in early 2010. A good response was obtained from the profession and from an equal number of family-run businesses based throughout Scotland.

Building on the results of that consultation, a number of informal round-table discussions took place in Glasgow, Dundee and Edinburgh, at which solicitors and representatives of the businesses met together to plan the most effective training for solicitors seeking to advise family-run businesses. Follow this link for a report of the key results.

The programme was introduced by two short breakfast seminars, each run twice and facilitated by Martin Stepek, Chief Executive of SFBA. The events were held in Edinburgh, Glasgow, Dundee and Aberdeen in mid-2010.

Two booklets were produced, one to support each seminar: Understanding the Business Family and Advising the Business Family.

In September 2010, a further workshop took place in Stirling. This was an opportunity for family business advisers and some business representatives to gather together to learn from the conciliatory approach offered by mediation. Charles Wood and Pamela Lyle, of Core Mediation, explained the benefits of mediation and a further booklet, Mediation and the Family Business, has been produced to support this seminar.

For a brief report of the inaugural meeting in April 2010, please see the Journal online. View a more detailed report.

If you have any queries of comments, please do not hesitate to contact lauramalcolm@lawscot.org.uk for clarification or details of how to get involved.