The European Economic and Social Committee, led by Rapporteur Jan Klimek, is currently drafting an own initiative report on family businesses.
The European Economic and Social Committee, led by Rapporteur Jan Klimek, is currently drafting an own initiative report on family businesses. The report by the EESC, as with the current own-Initiative report by the European Parliament, is potentially another important milestone for the family business community. As noted in the current draft report, EFB believes that three crucial issues must be the focus for future actions by policy makers: the definition of family businesses, the transfer of family businesses and the concept of patient capital.
Firstly, EFB is of the firm belief that policies designed to create a level playing field for family businesses, must be underpinned by reliable statistics. As the EESC-report rightly points out, a common definition of family businesses is necessary in order to achieve comparable data.
Secondly, the draft report also emphasises the challenge of business transfers. The EESC refers to the potential job losses due to failed business transfers and stresses the importance of succession planning and education as effective solutions to the challenges associated with business transfers. In addition, the draft report also rightly calls for a regulatory environment that is favorable for family business transfers, especially with regards to taxation and its effect on competiveness.
Thirdly the concept of patient capital, as highlighted in the draft report, is crucial for the continuation of family businesses. The long-term perspective of family business manifests itself through the use of patient capital, as family firms use it to finance their investments, which allows them to make independent strategic decisions.
In general, EFB endorses the current draft report and is convinced that it will help to advocate the cause of family businesses at both the National and European level.
The report is expected to be voted on in September.