Small businesses are a family affair – but ‘sons’ are the favourite

• 41 per cent of cent of small business owners and sole traders employ family members in their business, with 15 per cent hiring sons and daughters
• Just 63 new companies registered on Companies House in the last financial year included ‘and daughter(s)’ in the company name compared to 1,765 containing ‘and son(s)’
• Family businesses are 44 times more likely to have ‘& son(s)’ than ‘& daughter(s) in the name
• 17 per cent of SME business owners and sole traders plan to pass their company on to a family member to run upon retirement

New research¹ by Direct Line reveals small businesses are a family affair, with 41 per cent of SMEs and sole traders employing family members. One is seven (15 per cent) small business owners employs at least one of their children to work for them.

Analysis² of Companies House data shows when it comes to naming a family business, sons are favoured over daughters, with businesses 44 times² more likely to have ‘and son(s)’ in the name than ‘& daughter(s)’.

In the last financial year just 63 new companies registered on Companies House included ‘and daughter(s)’ in the company name. This is in stark contrast to the 1,765 new companies registered containing ‘and son(s)’.

More than a quarter (27 per cent) of small business owners employ their partner to work for their business, with 14 per cent employing a sibling to work alongside them. More than one in ten (11 per cent) SMEs owners and sole traders have hired a parent to work in their company, with the same number hiring a brother or sister in-law. One in 14 (7 per cent) small business owners work alongside their grandparents in their company, ensuring work is a family affair.  

Table 1: Family members employed by small business owners/sole traders

Source: Direct Line 2024

When it comes to succession planning, one in seven (17 per cent) business owners and sole traders say they plan to pass their business on to a family member to run upon retirement. However, relations may not want to take on a business, seven per cent say they don’t think their family would want to run their company.

Alison Traboulsi, SME Product Manager at Direct Line Business insurance commented: "Family businesses are thriving, with thousands operating across the UK, where relatives work together to grow a company. Many business owners even hope to leave their company to a family member to run when they retire. However, it would appear that old traditions die hard when it comes to naming family businesses, with many still favouring ‘and sons(s)’ in the business name over ‘and daughter(s)’.”

ENDS

Notes to editors 

1.      Censuswide survey of 502 Small business owners/sole traders. The data was collected between 24.07.2024-26.07.2024. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.

2.      Freedom of information request to Companies House – data in the press release is for FY 2023/24. Total number of companies listed on Companies House (in FY 23/24) with ‘and son’ or ‘and sons’ in the name = 19,653. Total number of companies listed on Companies House (in FY 23/24) with ‘and daughter’ or ‘and daughters’ in the name = 445       

For further information please contact:   

Direct Line Group    

Unni Henry    

PR Manager   

Email: unni.henry@directlinegroup.co.uk    

About Direct Line business insurance  

Launched in 2007 Direct Line business insurance now has over half a million customer policies, providing a flexible range of insurance products for the landlord, van and small business sectors.  

Direct Line business insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.  

Direct Line business insurance and U K Insurance limited are both part of Direct Line Insurance Group plc.  

Customers can find out more about Direct Line business insurance products or get a quote by calling 0345 301 4827 or visiting https://www.directlineforbusiness.co.uk.