Agile, resilient, ready: How Irish family firms are evolving

Irish family businesses are ambitious, but they’re also facing into strong headwinds. Economic conditions (72%) and supply chain or operational costs (61%) top the list of concerns. Talent availability is another key issue, with 65% seeing it as a risk and just 17% viewing it as a growth opportunity — well below the global average.

Some may be underestimating the pace of change. While 20% of Irish family businesses say their market hasn’t changed, only 15% globally say the same. Globally, more businesses are shifting from growth to resilience: 23% now focus on stabilising their core business, up from 11% in 2021.

Irish family businesses are more cautious than most. Just 20% say they selectively experiment (versus 32% globally), and only 24% actively innovate in response to disruption.

Yet high performers are taking a different path. They’re addressing vulnerabilities in governance and leadership while leaning into their strengths, including deep, multi-generational relationships. And a small number of specific things set them apart: a clear purpose, structural agility, long-term capital, and a reputation that’s both protected and activated.

Purpose is a powerful unifier for family businesses. It guides decisions, aligns generations and creates long-term value. Globally, businesses with a clear purpose are more likely to take actions that drive sustainable performance.

Irish family businesses stand out in this area. Most (89%) can articulate their purpose in a single sentence. They also outperform global peers in having defined family values (98% vs 83%), mission statements (61% vs 57%), codes of conduct (80% vs 64%) and internal communication of purpose (49% vs 38%).

But there’s room to grow. Irish businesses are less likely to link purpose to customer orientation (39% vs 54% globally), and only 12% connect it to the UN Sustainable Development Goals (vs 19% globally). External communication of purpose also lags behind.

To capitalise on the opportunity, business leaders need to codify their purpose clearly — and communicate it publicly. In an era where transparency and authenticity drive trust, this is a missed opportunity for many. Embedding purpose into your customer experience and employee value proposition can also help attract and retain talent, which remains a key challenge for Irish family businesses.

High-performing family businesses aren’t held back by tradition. They use their structural strengths, like private ownership and fast decision-making, to move quickly and confidently.

Globally, agility is linked to innovation, growth, long-term focus and trust. In Ireland, 61% of family businesses see themselves as agile or very agile, compared to 45% globally. Their speed in decision-making and operational adjustments stands out.

However, Irish family businesses are less likely to view themselves as agile in forming strategic partnerships or entering new markets. There’s a clear opportunity to explore how external collaboration and diversification could support growth and reduce risk.

Agility also depends on governance. Strong boards enable fast and informed decisions, but 43% of Irish family businesses have only family members on the board, and just 30% have considered adding external advisors. Women make up only 22% of board members, and 63% of boards have no-one under 40.

Building agility means reshaping governance to reflect future growth. Diverse boards foster foresight, scenario planning and flexible capital deployment, and help prepare strategic leaders who drive growth, not just preserve legacy.

Irish family businesses are defined by long-term thinking, and it pays off. Nearly half (46%) prioritise long-term goals over short-term profit, compared to 34% globally. They’re also more focused on resilience (93%), profitability (91%) and succession planning (80%) than their global peers.

Financial comfort gives Irish family businesses flexibility. Over a third (35%) say access to capital helps them adapt to change, and they’re less likely to cite financial constraints or risk aversion as barriers.

Most rely on internal capital. Nearly all (98%) reinvest profits to fund innovation, while only 20% seek external funding, which is well below the global average of 36%. Use of government grants is higher (30% vs 18%), and 43% have a family office, compared to 33% globally.

Yet only 22% say they’re strong at aligning business strategy across generations, which is a missed opportunity. As ownership shifts, families must balance reinvestment with diversification. Governance becomes critical: clear covenants and decision-making frameworks help align owners and build capability around capital, governance and shareholder expectations.

Long-term capital isn’t just about preservation, it’s a growth engine. The most successful family businesses use it to fuel innovation, adaptability and strategic leadership.

Irish family businesses value their reputation, and rightly so. They’re more confident in it than the global average, yet 63% say media scrutiny poses a major risk (vs 43% globally).

Strong internal culture drives external trust. 87% of Irish family businesses report higher trust from customers and partners, compared to 74% globally. Just 22% feel somewhat or extremely vulnerable in today’s environment, 2% lower than the global average.

Relationships built over generations are a key strength. 72% cite them as a competitive advantage (vs 48% globally) and 61% point to market expertise. Internally, loyalty from employees and non-family executives is also strong.

Irish businesses are leading on sustainability. 63% plan to invest in ESG (environmental, social and governance) initiatives through to 2030 (vs 45% globally) and 57% see it as a growth opportunity.

Yet reputation needs active management. While 72% contribute locally, fewer engage in philanthropy or impact investing. Clear, purpose-driven communication is essential; silence creates space for doubt.

Empowering employees to share your story and integrating younger family members can help keep your brand relevant. Reputation isn’t just a legacy to protect, it’s a lever for growth.