Family businesses represent 60 per cent of all European companies and between 40 to 50 per cent of all jobs, making it very timely that parliament has drafted a report on the issue after years of the EU failing to act.
The sector is dominated by SMEs - particularly micro-enterprises with fewer than 10 employees - although some of the largest European companies are also family-run. This prevalence of small businesses means that many family companies can take advantage of EU policies targeting SMEs.
However, family businesses - be they small, medium or large - have specific features and face certain challenges that merit some attention.
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Parliament's report, which will be voted on in plenary after the summer recess, should not just be a new reflective document warning about the problems that family businesses face - it should be considered a basis to actually trigger European action to address them. Several key issues could be dealt with if a number of measures were adopted.
First, there needs to be a common definition of 'family businesses', so that statistical data can be consistently gathered and used across Europe.
This would allow for a clear and precise picture of what the specificities of such businesses are and what challenges lay ahead.
Second, we should promote simpler rules for the transfer of these companies, which is usually a complicated process, due to the application of succession law. Inheritance tax must be adapted, to prevent small family businesses from disappearing or becoming smaller when transferred after the owner's death.
In addition, information about how to successfully manage this kind of transfer should be made available to these companies, so that they can follow a protocol in which all legal steps are clearly described.
Third, new technologies can play a vital role in boosting family companies' performance. Particularly, taking action to develop digital skills would allow family businesses to take full advantage of the use of digital technologies.
In addition, their contribution to innovation could be enhanced by promoting their participation in private-public partnerships and clusters and by fostering their collaboration with research institutions.
A fourth measure should be the creation of a one-stop shop for enterprises in member states and in the European commission, which could act as a contact point for family businesses to facilitate all the procedures they have to undertake.
Furthermore, the commission and EU countries should provide them with information about opportunities for internationalisation, disseminate guidelines and standard texts and solutions to help them overcome their specific needs, and encourage the exchange of best practice.
Entrepreneurial education is of crucial importance to develop more entrepreneurial mindsets. This education should include specific family business issues, such as succession and family governance, as well as ownership and innovation strategies.
Let's create an environment in which starting a business is a desirable and informed choice. There is broad consensus in parliament on these points.
I hope the approval of the report in plenary will serve as a wake-up call to the commission and member states to improve the fiscal, legal and administrative environment in which family businesses operate, so that they are better equipped to grow in an ever increasingly competitive world.