Family businesses are outpacing their non-family peers in key metrics like revenue growth, while navigating evolving technological, organizational and financial needs, according to Deloitte Private’s new global report, “Defining the Family Business Landscape, 2025,” part of its “Family Business Insights Series.” The research, based on a survey of 1,587 family businesses and 30 executive interviews, captures a moment of both acceleration and transformation for multigenerational enterprises around the world.
Why Family Businesses Are Winning
According to the report, family businesses now represent 22% of all companies worldwide with revenues above $100 million, and their collective revenue — currently estimated at $21 trillion — is projected to soar to $29 trillion by 2030, an 84% increase since 2020.
Dr. Rebecca Gooch, global head of insights at Deloitte Private, attributes family businesses’ explosive growth in recent years to the distinct mindset and structural resilience that define family enterprises. “Family businesses tend to have a longer-term outlook than non-family businesses, which can span years or even generations,” she said. “The fact that they prioritize this long-term view means that they’re able to create value over the long term rather than just focusing on short-term earnings.”
That patient capital model allows family enterprises to invest steadily in innovation, diversification and new markets, often weathering volatility better than their public or private equity-backed peers. “Structurally, family businesses tend to be somewhat different,” Gooch noted. “They can, for instance, rely more heavily on lower-cost capital to fund their businesses, such as retained earnings or family money, whereas non-family businesses tend to rely more heavily on external debt or equity financing. This can benefit family businesses in a variety of ways. For instance, lower debt levels can enable family businesses to seize opportunities when their competitors can’t.”
“If we look at the history of family businesses and the longevity of them, that, in itself, provides confidence that it is a trajectory that will continue in a positive way,” adds Laura Pearson, Deloitte Private’s U.S. family enterprise leader.
That resilience often stems from generational perspective. As Gooch recounted, one centenarian business leader told her, “We are over 100 years old. We have lived through war. We have lived through famine. We are resilient. There are few things that you can send our way that we will not be able to navigate.”
The Great Wealth Transfer and Ownership Shake-Up
While patient capital is a key to family enterprises’ success and longevity, the report found 26% of family businesses are now seeking outside investment or private equity involvement, signaling a new era in ownership transition. As the great wealth transfer reshapes global family capital, families are weighing how to bring in liquidity while maintaining control.
“For a lot of families, the approach is to take a minority investment from an outside party,” Pearson explains. “So, they’re still retaining control, but they’re getting opportunity through outside liquidity to explore other geographical areas or M&A.”
Gooch added that this wave of partial investment is not necessarily a sign of retreat, but of evolution. “For some, they want to grow and they’re at a point where they’ve grown as much as the family can allow them to,” she says. “Seeking outside investment can enable them to go into different markets, move into different arenas, or get outside skill sets that they might not have.”
Women at the Helm: Governance and Growth
Just as family businesses are outperforming non-family competitors, female-led family businesses achieved 10% revenue growth in 2024 — outpacing their male-led peers by two points — and demonstrated stronger governance and risk management practices.
Similarly, their growth forecasts are higher at 14% in 2025 and 15% in 2026, compared to 12% and 14%, respectively, for men, though the report notes that these figures are in the margin of error.
Pearson pointed to women leaders’ proactive approach. “Women are more likely to engage and look at a variety of avenues to help mitigate risk,” she says. Family businesses led by women CEOs have a somewhat higher rate of implementation across each governance mechanism highlighted, according to the report. For example, 44% of women-led businesses have a family charter, constitution, or agreement versus 36% of businesses led by men, while 44% of women-led businesses have a family board or council versus 40% for men.
Technology, AI and the Human Element
Forty percent of surveyed family businesses identified investing in technology — particularly artificial intelligence — as their top growth strategy. Yet, unlike some public companies, family enterprises are taking a values-driven approach to digital transformation.
Gooch pointed to an interview with a family business CEO who implemented a “no layoff due to technology integration” policy. The executive told her that after the announcement, some employees began volunteering ideas for automation — including their own roles — because they trusted the company to find new positions for them. “It was a wonderful example,” Gooch says, “of how a family business can embrace technology to power their growth, alongside their core values around creating a positive company culture and family legacy.”
Pearson cited another case in which a family business used AI-driven predictive maintenance in its facilities. “The representative talked about how energized their workforce was by the fact that the company was really trying to make improvements to their processes that were being driven by AI versus being threatened by it.”
Governance Challenges and Generational Continuity
Despite their strengths, family enterprises still wrestle with governance. More than a third of respondents cited uncertainty over decision-making authority and succession as top challenges. Gooch says success starts with clarity and structure. “It’s important for families to establish strong governance structures and clear lines of engagement for how family members are going to interact within the operation of the business.”
She shared examples from the executives she interviewed of effective guardrails: requiring family members to have outside work experience before joining the company, alongside certain academic qualifications; mandating family employees report to non-family supervisors; and setting up boards with both family members and outside professionals. “One family business executive said he has a fiduciary board, which is majority family controlled, alongside advisory boards,” she says. “In one sense, the advisory boards act like a proving ground—nearly all family directors served on one first, so that the family could get a clear sense of how they would contribute before they stepped into a governance role.”
Families also streamline ownership to avoid gridlock. “They might buy out other family members to keep those in the decision-making pool lean,” Gooch says. “That’s what I’ve particularly found amongst family businesses that have lasted over 100 years old.”
Professional Management, Active Family Ownership
Both Deloitte leaders noted a clear trend toward professional management alongside active family ownership — a hallmark of maturing multigenerational enterprises. “There’s a need for expertise in particular areas, whether that’s specifically financial or something with a nuance like technology or AI,” Pearson says. “So, there’s an acknowledgement that in order for an organization to be multigenerational, you’re going to need the right people at the helm.”
The key, she emphasizes, is trust. “The major consideration when bringing in an outside management member is doing it with enough time to allow the trust to be generated and developed between family and outside management members.”
Gooch adds that the shift often mirrors generational evolution. “The further you get down the family tree, the more likely family members are going to play active ownership roles,” she says. “For instance, they might sit on the board rather than in the C-suite.”
That approach, she adds, acknowledges both legacy and reality. “Not every generation is going produce an heir that has the right skillset, desire or aptitude to be able to lead the family business,” Gooch says. “So, they can shift into positions of governance with outside talent to support their ongoing growth.”