Media release - 14th September, 2012

Second generation principals lead to business continuity for Raine & Horne

The family business model is the oldest and most enduring in the world – in fact, it was the only business model until relatively recently. On 19^th September, Australia celebrates National Family Business Day and the role family business has played in shaping the social, economic and cultural fabric of Australia.

CEO of Family Business Australia, Philippa Taylor, says, “Family businesses are the backbone of Australia and many of Australia’s largest and most loved companies started off as a family business”.

“Iconic Australian brands such as Raine & Horne, Taylors Wines, Coopers Brewery, Akubra Hats, Rossi Boots, Haigh’s Chocolates, Maggie Beer, Myer, Ugg Australia, Bundaberg Brewed Drinks and even our most famous Aussie cossie – Speedo – started life as a family business, and many remain family owned today.

“The defining characteristic of family business that sets it apart from any other business structure is the intention to ‘endure’.

“This focus on creating value for future generations rather than turning a quick profit is what makes family business especially important to the Australian economy,” she added.

National Family Business Day will be celebrated by family businesses across the country and a special morning tea will be held at Parliament House in Canberra.

“There has been an overwhelming amount of support for National Family Business Day,” said Ms. Taylor

“Thirty-six Federal Members and Senators will be showing their support for the family businesses in their electorates by attending the event and forty-eight will be supporting the day through other activities.”

National Family Business Day is not only an opportunity to celebrate the contribution of family businesses, but also to highlight the need for Government policy makers to take into account the unique challenges faced by the sector that employs 50% of the population[1].

It is critical that we provide education in all areas of family business governance to ensure that we avoid perpetuating the `clogs to clogs in three generations’ adage.

The diversity of these family businesses across industries, size and geography means they impact Australians every day in almost every way, for example the Top 100 Australian private family firms for 2008 show family organisations such as Visy Industries employ 9,100 people; Linfox Transport employs 13,000 and Ramsay Health employ 27,000.

“National Family Business Day is all about celebrating Australia’s innovation and the families that took a risk around a business idea to create value for generations to come,” said Ms Taylor.

Take family owned and operated real estate group Raine & Horne, which opened for business in 1883. It’s led by fourth generation CEO Angus Raine, and now boasts many thousands of property professionals in its network in Australia and overseas.

“Some of our long-established offices are also family businesses that are now led by second generation principals, which is very satisfying for me as some of these offices have been with us for over three decades,” says Mr Raine, who is a long time committee member of the FBA in NSW.

“This passing of the baton not only guarantees business continuity, but means these offices are led by principals who are fully immersed in every aspect of the real estate industry and are well-known within their local communities.”

About FBA

Family Business Australia is committed to Australia’s future through a dynamic, sustainable family business community. As the Peak Body for Family Business we aim to professionalise family firms through personal, professional and community development. 19 September is National Family Business Day, a day to celebrate the contribution that family businesses make to Australia’s future.

[1] MGI Australian Family & Private Business Survey 2006

Raine & Horne supports National Family Business Day at Parliament House