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Small Businesses

Volume 457: debated on Thursday 8 March 2007

To ask the Chancellor of the Exchequer what estimate he has made of the contribution of family-run businesses to the UK economy; and if he will make a statement. (126128)

There is no standard definition of ‘family-run businesses’. A common definition used by the DTI in its Annual Small Business Survey is that a family business is one

“majority owned by members of the same family”.

Estimates based on responses to the 2005 survey and official turnover figures found that the annual turnover of small and medium family run businesses was £700 billion at the start of 2005. This was 55 per cent. of the turnover of all small and medium sized enterprises. No estimates are available for the contribution to the economy of large family businesses. The Government recognise this essential contribution by family businesses, and are committed to providing an economic environment that sustains and encourages such enterprise.