The importance of Family Businesses highlighted by the European Parliament
The report ‘recognises that family businesses are the single biggest source of employment in the private sector and that, therefore, what is beneficial to continuity, renewal and growth in the family business sector is conducive to continuity, renewal and growth in the European economy.’
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.
Angelika Niebler MEP, the author of the report, noted ‘we should also take into consideration that family businesses mostly take a long-term view on growth prospects which makes them a stable contributor to job creation in their local communities.”
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.
EFB hopes that the report is the catalyst for further actions by both the European Parliament and European Commission in assisting family businesses in Europe to reach their full potential. In many Member States significant challenges remain to ensure a sustainable regulatory framework for this essential business sector.