By Sharon Munro,

CEO, Barrhead Travel

THERE is no single secret to success, but I do believe there is one type of business model that has distinct advantages – a family business. Scotland has around 60,000 of them and the contribution they make is immense. They are behind roughly half the GDP created by private enterprise and account for an incredible 69 per cent of the country’s small and medium-sized enterprises (SMEs).

We believe there are several ways the family ownership of Barrhead Travel gives us an edge on our competitors. First, family businesses often have a flatter management structure. These short communication channels mean that our staff feel more engaged in our goals, our culture and ethics. We also have an open-door policy, giving staff freedom to speak to me or any of the directors any time.

There’s also job creation. Half of the country’s private sector workers are employed by a family business and there is evidence they are often supported more in the development of their careers.

At Barrhead Travel we now employ more than 1,000 people across the UK. We, along the trend of other family-owned companies, put training and development at the core of the business. Our staff are often more multi-skilled as a result of this focus, giving more job satisfaction and for the business a better retention level.

In 2018 we aim to have one apprentice per four members of staff. Bringing apprentices into the business and developing them with a wide skill-set is something that has proved invaluable to us time and time again and we are passionate about continuing to do so.

A study by the Institute for Family Business (IFB) found that family business owners have a tendency to manage the business with long-term stewardship in mind. When we decide to invest significantly, as we have done recently in leading-edge display technology in our shops or open doors in new markets such as England and Northern Ireland, we do so thinking about the long-term effect it will have on the bottom line.

Research from Harvard Business Review also suggests family firms are among the most innovative in their industry. There are countless examples of family-run businesses in Scotland that have brought innovation to the marketplace, including Baxters, Irn Bru-makers AG Barr, and the late, inspirational Arnold Clark to name a few. The research suggests entrepreneurial families tend to concentrate the investment of their wealth in one or few firms, which results in the bearing of carefully-nurtured fruit.

Last but not least, company owners or senior team members will often have grown up in the business and by the time they climb the ranks they know it inside out. For example, both our sales and operations directors started as travel consultants more than 20 years ago and have grown with the business as it expanded.

I know this first-hand. At around 14 I started delivering leaflets for Barrhead Travel, later cleaned the offices on a Saturday, then started work as a trainee. As “the boss’s daughter” I was much more heavily scrutinised and had to prove myself not only to him, but also to colleagues. This, in turn, fuelled sheer hard work and determination and helped me hone my skills to become CEO of the business now.

As well as making a huge economic contribution, family businesses have proved they have staying power as 61 per cent are at least 11 years old. Barrhead Travel has been around since 1975 and we plan to be around for much longer.

Perhaps I’m biased that the family-owned business model is best, but the statistics agree.