Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZ Family Businesses Feel The Heat From Stress

NZ Family Businesses Feel The Heat From Stress

Stress levels are reaching boiling point among many of the world's family businesses, including those in New Zealand.

According to a recent Grant Thornton International study, stress affected more family business owners in Turkey (81%), New Zealand (64%), Russia, South Africa and Hong Kong (all 62%) than any of the other countries surveyed.

"Personal relationships create additional family stress for family businesses that still have to deal with everyday operational matters," said Grant Thornton New Zealand spokesman Peter Sherwin.

"In New Zealand, the exacerbating operational factor is regulation and red tape. In addition to red tape, there are constraints on growth, which we know from our earlier survey results is primarily the shortage of skilled workers."

Mr Sherwin said that, while New Zealand businesses as a general group were rated among the less stressed when compared with international counterparts, when the Grant Thornton survey analysed family businesses specifically, there was a different picture. Family businesses had much higher levels of stress.

"New Zealand family businesses are not alone in this. Globally, 42% of family businesses have seen an increase in stress within the last year alone," he said.

Mr Sherwin said that family businesses by their very nature could create stress, ranging from relationships with spouses directly involved to family shareholders indirectly connected.

"Dealing with day-to-day operational factors is difficult enough, but when you put family relationships into the mix within a commercial context, the outcome is potentially explosive. Therefore the focus has to be on what steps can be taken to reduce the potential for family-related business conflicts."

The global survey found that the main stress-causing factors specific to family businesses were:

Wealth being tied in to the business

Relationships with shareholders

The future ownership of the business

Family involvement.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>