Family owned business find it challenging to get right strategic investment partners says findings of a KPMG international survey.
The survey found that 58% of family businesses interviewed said that they struggled to find finance.
Alan Barr, managing partner at KPMG Eastern Cape, says he is not surprised by the results. “A lot of family owned businesses cannot access finance due to the restrictions and finding the right partners,.This is a big barrier to growth which the do need in the current financial environment.”
The most feasible source of finance for small businesses is involving themselves with high-net-worth individuals (HNWIs), many of which have family business experience as well as significant investment capital, the study’s findings suggest. However, family owned businesses seem to either have overlooked or explored this route.