Family businesses have experienced a double-digit decline in growth from 43% in 2023 to 25% in 2025, prompting leaders to focus on survival strategies such as supply chain resilience, stricter cost management, and talent retention amid rising macroeconomic uncertainty.
On the other hand, single-digit growth remained robust (32% in 2025 vs. 28% in 2023), and agile and purpose-driven firms also outperformed their peers (31% vs. 21%), according to PricewaterhouseCoopers (PwC)’s “2025 Global Family Business Survey,” released on Monday.
They are prioritizing reputation and legacy in the face of broader market volatility, with almost one quarter (23%) noting they are looking to stabilize the core business over the next two years, up from 20% in 2023.
At the same time, as new and emerging technologies transform the commercial landscape, a mere 3% noted they are looking to reinvent the business—even as three-fifths (61%) see AI as a growth opportunity.
Jonathan Flack, global private leader, PwC US, said: “Shifting trade policies, supply chain uncertainty, and market volatility are seeing family businesses veer on the side of caution—prioritizing reputation and legacy. While growth remains robust, the percentage achieving historic double-digit growth has fallen. Few businesses are immune to such external shocks—but family businesses that are agile and purpose-driven continue to outperform their peers, highlighting important strategic takeaways for businesses at large. But the pace of reinvention remains slow. As new and emerging technologies transform the global economy, businesses must be prioritizing agility, innovation, and their digital and AI transformation programs if they are to remain agile and unlock new avenues for growth.”
Conducted in collaboration with the John L. Ward Center for Family Enterprises at Northwestern University on behalf of its Kellogg School of Management, the survey interviewed 1,325 family businesses across 62 countries and territories between 1 April and 17 June 2025.
Respondents comprised businesses ranging from under $10 million in revenues (18%) to multi-billion-dollar enterprises (9%).
Over half (54%) report annual revenues of more than $51 million (with 41% of more than $101 million).
Manufacturing accounts for 34% of the businesses surveyed, and 29% are in consumer goods, with the rest coming from financial services, technology, and healthcare, among other industries, it explained.
However, the survey highlights the importance of continued agility and purpose-driven management to commercial success in a volatile environment. Family businesses represent two-thirds of global GDP and 60% of global jobs, according to UN estimates.
Priority
The report stated that family businesses are currently prioritizing macroeconomic uncertainty and shifting regulations while also facing perennial challenges like supply chain disruptions, volatile costs, market saturation, and talent shortages.
These issues are forcing leaders to focus on strategic priorities such as supply chain resilience, cost management, and talent retention, with some families addressing these challenges by adapting leadership teams and collaborating with partners.
Persistent macroeconomic uncertainty and shifting regulatory frameworks now dominate boardroom agendas.
Family business leaders also said they were concerned about a set of perennial challenges: supply chain disruption, cost volatility, market saturation, and talent shortages.
Many family businesses are moving away from high-growth bets and towards measured, steady-growth strategies that reinforce their resilience.
The report also observed a trend of prioritizing stable core operations, as two-year growth targets fall from 2021 and 2023 levels.
Family businesses cautious
While agile and purpose-driven family firms may be yielding higher returns than their peers, market volatility is seeing family businesses veer on the side of caution.
Just over one-third (35%) say they favor taking a cautious approach to their long-term strategies, with only one-third (32%) noting they are looking to selectively experiment.
Looking at longer-term operational transformations—a mere one-fifth (21%) say they are actively looking to rethink their management strategies, with a vanishingly small 3% noting they are looking to reinvent their businesses.
As family businesses look to insulate themselves from macroeconomic shocks, safeguarding the business (78%) and preserving the family’s legacy (77%) rank as the top long-term goals—well ahead of generating dividends (68%). Roughly two-fifths (43%) note negative media coverage or public scrutiny represents the greatest risk to reputation.
Unlocking growth amid a volatile climate
To grow with confidence, PwC research points to four areas of focus that set top performers apart:
- Clear and codified purpose is behind a range of growth-driving capabilities.
- High-performing family businesses are actively leaning into their centralized decision-making.
- In an era of macroeconomic uncertainty and geopolitical volatility, patient capital is proving to be a growth engine.
- For family businesses, reputation is both a legacy to protect and a lever to activate growth.
Embracing structural agility
The most dynamic family businesses are responding in agile ways to shifting market demands.
For example, the Liverpool-based Bibby Line Group, founded in 1807 by John Bibby, evolved across six generations from a sailing ship operator into a diversified business group, including financial services and infrastructure.
“We went from sail to steam to oil, and now we’re transitioning to electric propulsion systems and vessels to service offshore wind farms,” said chairman Sir Michael Bibby, reflecting on the company’s constant reinvention.
“You have to evolve. You won’t still be here in 40 years if you don’t. And that’s just one generation.”
According to Bibby, a central challenge for growing family firms lies in maintaining alignment between shareholders—family members with long-term stakes—and executives, who may not be incentivized to take entrepreneurial risks. This alignment is especially crucial to preserving agility, one of the defining strengths of early-stage and founder-led businesses.
Agile, purpose-driven vs. family business peers
Family businesses reporting greater agility navigating market shifts, customer demands, and operational challenges over the past year were significantly more likely to achieve strong commercial outcomes: 31% recorded double-digit growth compared to just 21% of the overall sample.
There is also a powerful link between purpose and core enablers of sustainable performance. Businesses with a clearly articulated purpose are twice as likely to pursue aggressive growth (18% v 9%) and significantly more likely to prioritize innovation (23% v 16%) and long-term goals (35% v 26%).
A third (33%) actively foster a culture of experimentation and innovation, compared to just 24% of the total sample.
AI a growth priority
As family businesses contend with navigating a challenging macroeconomic landscape, they are also looking to new growth opportunities.
Just over three-fifths (61%) cited experimentation with AI as a growth opportunity—in roundtables with family business leaders, some noted enhanced customer engagement and improvements in their dynamic pricing response times, even though they made relatively modest capital investments in GenAI deployment.
They are also seeing output from AI. While around one-third of CEOs from non-family businesses report increased revenue (29%) and profitability (32%) from GenAI, the returns among public family businesses are markedly stronger.
According to family business data in PwC’s 28th Annual Global CEO Survey, nearly half (46%) of these firms report that GenAI has boosted both revenue and profitability.
New and emerging technologies are key priorities—with technological advancements and digital transformation the top priorities for nearly two-thirds (65% and 64%, respectively), particularly for mid-sized firms that are scaling up.
Matt Allen, John L. Ward Clinical Professor of Family Enterprises and executive director of the Ward Center for Family Enterprises at the Kellogg School of Management, Northwestern University, said: “Family enterprises have historically been labelled conservative in their approach to growth, often choosing to prioritize long-term performance, the protection of family assets, and the preservation of legacy. Some might assume that the 25% of family businesses in this study achieving double-digit sales growth are doing so in spite of these priorities. The results, however, tell a different story. High-growth family businesses are embracing their family roots rather than shying away from them. These top performers leverage a strong sense of purpose, concentrated ownership, a long-term investment approach, and concern for their reputation. When managed effectively, family businesses are uniquely positioned not just to withstand uncertainty but to thrive.”
