On the 16th of June the Committee for Industry, Research and Energy (ITRE) adopted its own-initiative report entitled “Family Businesses in Europe”.
On the 16th of June the Committee for Industry, Research and Energy (ITRE) adopted its own-initiative report entitled “Family Businesses in Europe”. The report, led by rapporteur Angelika Niebler, is an important moment for family businesses in Europe, as the report rightly highlights the importance of the sector for the European economy. In addition, the report presents a holistic picture of the challenges faced by family businesses and lays the ground for effective support and policies to support this crucial form of enterprise.
In sum, the report calls for reliable data, a family business friendly transfer environment, family business education, benign corporate taxation on equity, a family business working group and family business impact assessments. Crucially, the report highlights the underlying regulatory challenges of what family businesses face, namely, the combined effect of private and corporate legislation.
As Rapporteur Angelika Niebler wrote recently, ‘despite the important role family businesses play in our economy – more than 60 per cent of all enterprises in the EU are family-run, and they account for 40 to 50 per cent of jobs in the private sector – policymakers pay them very little attention.’ She also rightly points out that, ‘more than six years after the commission’s group of experts completed its work on family businesses, it is crucial to focus once more on this important category of enterprises. We urgently need more data, facts and figures in order to better understand the issues and challenges family businesses face and to promote the exchange of best practice. The key point is to draw policymakers’ attention to this important group of entrepreneurs and to provide assistance where it is needed.’
EFB welcomes the own initiative report, which proposes direct actions on the European level, sets out to develop an assessment framework for family business policies and calls on the member states to support the growth of family businesses. EFB believes that the report marks the first step towards more parliamentary support for family businesses.