Global family-owned enterprises are losing growth momentum as the proportion of companies reporting double-digit sales gains dropped from 43 percent to 25 percent in two years.
Analysts at PwC surveyed 1,325 family business leaders across 62 countries, finding that performance among family firms has diverged sharply, ending a post-pandemic recovery phase that once set them apart for resilience. PwC said the decline represents a return to mid-pandemic levels for a sector that contributes about two-thirds of global GDP and 60 percent of jobs.
“Traditional strengths such as high reinvestment and low leverage are proving harder to translate into growth amid geopolitical shocks, trade realignments, and advances in generative AI,” the report stated.
The study shows that most family businesses have shifted from aggressive expansion to consolidation. Firms aiming for “steady growth” now outnumber those chasing rapid expansion, signaling a more defensive strategy under persistent economic uncertainty. Only 22 percent of respondents said they actively innovate during market disruption, while just 3 percent reported reinventing their businesses entirely.
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PwC warned that such caution could leave many family firms underprepared for the speed of industrial and technological change. “Many family enterprises may be underestimating how much change is coming — and how fast,” the report noted.
Still, a subset of high-performing family companies continues to outpace peers by embedding purpose, agility, and long-term investment into their strategies. Firms with a clearly articulated purpose are twice as likely to achieve strong growth, while those described as “agile” reported 31 percent double-digit growth, compared with 21 percent among less agile peers.
“Firms with purpose-driven strategies and patient capital are proving more resilient,” said Matt Allen, professor of family enterprises at Northwestern University’s Kellogg School of Management, which collaborated on the survey.
For African and Nigerian family conglomerates spanning manufacturing, retail, and logistics, the findings mirror a growing shift toward debt control, governance reforms, and selective digital investment instead of diversification or listings. PwC Nigeria analysts said family-owned firms that organize governance and succession structures are better positioned to sustain earnings through 2026 despite volatile markets.
The report concludes that the global family business landscape is entering a slower growth phase where traditional strengths must be redefined. “Standing still may feel like progress,” PwC cautioned, “but in today’s environment, stability without innovation is not sustainable.”