You may not know this new buzzword yet, but if you want to impress people at dinner parties use it now: our latest report ‘The Dawn of the Fampreneur’ predicts that 2015 will be the year of the fampreneur.
Of course, we know the family business is far from a new phenomenon; there are countless businesses across Britain established, owned and successfully operated by families. Similarly, the notion of the start-up business is well established.
However there is a new movement in the start-ups world…
Start-up businesses are no longer the reserve of individuals and peer groups brought together by university or at the workplace, where both backdrops serve to interview each candidate before a joint venture is entered into. Now it’s more a question of discussions at the dining table where frustrated spouses, siblings and in-laws plan career exit routes from standard jobs to the new opportunities of a fampreneur business with higher incomes and more flexible working arrangements.
Much like its predecessor mumpreneur, fampreneur is a neologism. It describes a family member who sets up a new business or multiple new businesses with one or more other family members. Together they take on the financial risks in the hope of profit.
Rufus Bazley, Marketing Director at BusinessesForSale.com, commissioned the research. He says: 'This new breed of entrepreneur, the fampreneur, is not a third generation inheritor of an established bloodline business.
'It’s someone who sees a new opportunity and recognises that the skills, trust and finance he or she shares with one or more relatives means their exposure to risk is reduced while the potential for success is far greater than going it alone.'
When we at BusinessesForSale.com noticed an increase in the number enquirers planning a start-up with one or more family members, we decided to do some research. We found that 65.2% of entrepreneurs who are planning to go into business with family members will do so in 2015. In addition a high proportion (75.4%) are willing or keen to relocate to enjoy the change in lifestyle they crave.
Equally these fampreneurs are very particular about the sectors they’re looking to work in and are very savvy about the skillset of each fampreneur. 96% of fampreneurs had at least one year’s experience in their business sector of choice while 30.8% had over ten. And while trust ranked the highest amongst the reasons for setting up shop with a relative, experience came a close second above commitment and flexibility.
'You’d imagine the primary benefits of starting a business with a relative would be trust and the ability to work long hours,' Mr Bazley continues, 'but a key finding is that the fampreneurs are also highly qualified for each job with impressive sector experience and general high-ranking corporate roles, making the businesses they start primed for success.'
The survey also quizzed established fampreneurs, the majority of which had businesses established in the last four-year period. It found that they too had small groups of family members enjoying the success of being the boss thanks to a relevant blend of skills and experience acquired prior to start up.
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