NEW analysis of the United Kingdom’s Small Business Survey has revealed a worrying decline in the number of family-owned businesses across the country—except in Wales, which was the only UK nation to see an increase since 2020.

The research, conducted by Geraldo’s, tracked changes in the percentage of small and medium-sized enterprises (SMEs) that identified as family businesses from 2020 to 2023, the latest available data. The overall findings suggest a downward trend, with the proportion of family-run SMEs across the UK dropping by 5% from a peak of 80% in 2021 to 75% in 2023.

Wales stands alone

Despite the overall decline, Wales saw an increase in family businesses over the four-year period, rising from 73% in 2020 to 76% in 2023. In contrast, England, Scotland, and Northern Ireland all experienced declines. Northern Ireland maintained the highest percentage of family-run SMEs, but even it saw a reduction from 83% in 2020 to 77% in 2023.

Sector-specific challenges

The survey also examined changes by industry, revealing that only Farming and the Information and Communications sectors maintained their peak percentages. Farming had the highest overall proportion of family-owned businesses, with 90% of small to medium-sized enterprises in the sector still in family hands.

However, the Arts and Entertainment sector saw the sharpest decline, with family-run businesses falling by 13%—from 57% in 2021 to just 44% in 2023.

The pressures of running a family business

Toni Dawson, owner of Geraldo’s, shared her insights into the struggles faced by family-run businesses:

“It’s a shame to see the number of small family businesses in decline, but I think it speaks to the unique pressures that these businesses can face. When you’re running a business that carries your family’s name, there’s a sense of responsibility that goes beyond the day-to-day work. The people you employ, whether they’re part of your family or not, rely on you—and ultimately, there’s no one else to help carry that burden, unlike in businesses with multiple owners or investors.

“However, there’s also a great amount of pride in being able to carry on the name and heritage of something that means so much to you and your history. I hope that as we see new figures come in, we start to see some more growth again in businesses that are owned by a family long term.”

While family-run businesses remain a vital part of the UK economy, the overall decline highlights the increasing challenges they face. Wales’ ability to buck the trend may offer lessons for other regions looking to preserve this traditional business model in the years ahead.

ASCONA GROUP, one of the fastest growing companies in Wales, has secured a £92 million funding package from HSBC UK and Barclays.

The refinancing package, which was led by HSBC UK, will allow Ascona, a Pembrokeshire-based business with operations across England, Wales and Scotland, to continue to pursue its fast growth strategy.

Ascona was founded in 2011 by CEO Darren Briggs and embarked on its current growth strategy in 2017. Since then, the business has gone from two to 60 sites across the UK, serving over 300,000 customers every week.

Darren Briggs, Founder & CEO of Ascona Group – pictured – commented: “We are delighted to complete this important transaction for Ascona. This strategic financing marks a pivotal moment in our growth journey as we continue to strengthen our footprint as one of the UK’s largest independent forecourt operators and one of Wales’s fastest-growing companies. We are incredibly grateful to the HSBC UK and Barclays teams for their support.”

Simon Williams, Relationship Director at HSBC UK, said: “We are pleased to support Ascona Group with this significant refinancing deal. It provides a solid foundation to secure future investment and drive the company’s impressive growth plans. Ascona Group’s entrepreneurial spirit and commitment to expanding its footprint across the UK aligns perfectly with our mission to foster business growth and economic development. We eagerly anticipate the company’s continued success and its positive contributions to the communities it serves.”

Rebecca Davies, Relationship Director at Barclays Corporate Banking, said: “We’re delighted to have worked with the Ascona Group on this pivotal refinance, enabling them to implement the next phase of their ambitious strategic plan. The group has a strong track record of high growth and supporting the communities they invest in across the UK. We look forward to using our industry expertise and regional footprint to further support this in the years ahead.”

In October 2024, Ascona Group was recognised as one of the fastest growing businesses in the UK by the UK Fast Growth Index for the second year running. On top of this, two of its forecourts were named as winners at Forecourt Trader 2024 awards, highlighting Ascona’s commitment to high-quality customer service and operational excellence.

A NEW solar farm set to generate green electricity for thousands of homes has been approved in Pembrokeshire.

The 8.6 MW project, featuring more than 14,000 solar panels, was originally developed by One Planet Developments Limited before being acquired by Shawton Energy Limited. Planning permission was granted last year, and construction is expected to commence soon, with energy production anticipated later this year.

Once operational, the solar farm will generate enough electricity to power approximately 2,500 homes annually, reducing carbon emissions by more than 2,000 tonnes each year.

Jamie Shaw, CEO of Shawton Energy, said: “Acquiring this ready-to-build asset marks a significant step for Shawton Energy as we continue to help UK businesses achieve their sustainability goals while lowering energy costs. This project strengthens our growing solar portfolio and reinforces our commitment to expanding renewable energy infrastructure.”

Robert Wall, director of Shawton Energy and head of sustainable private infrastructure at Lazard Asset Management, added: “We are pleased to support Shawton Energy’s expansion and investment in local renewable energy projects. The increasing demand for electricity requires diverse renewable solutions, and this solar farm will provide UK businesses with the low-cost energy they need.”

One Planet Developments’ business development director, James Stoney, welcomed the project’s progress, stating: “We are delighted to have worked with Shawton Energy on this development. Having taken it from concept to a ready-to-build stage, we look forward to seeing the project come to fruition.”

Shawton Energy, part of the Shawton Group, has been active in the renewable sector for nearly three decades, developing large-scale solar, battery storage, and renewable energy projects across the UK. The company partnered with Lazard Asset Management in 2023 to accelerate the deployment of fully funded commercial solar projects nationwide.