Family businesses in 2026: ambitious, resilient and under pressure
How the 2026 Family Business Barometer reveals the pressures, priorities and opportunities shaping family enterprises across Australia and New Zealand.
Family businesses are built for the long term. They carry family names, support local communities, employ generations of workers and often make decisions with the next decade, not just the next quarter in mind. But in 2026, that long-term focus is being tested.
The 2026 Family Business Barometer, conducted by Pronto Software and Family Business Association, shows a sector that remains ambitious and deeply committed to the future, while also facing mounting pressure from rising costs, compliance demands, skills shortages and cash-flow constraints.
For many family business leaders, the challenge is no longer whether to invest in growth, technology, leadership and succession. It is how to do so while managing the immediate demands of profitability, regulation and day-to-day operations.
Pressure today, ambition tomorrow
The report paints a clear picture of competing priorities. Nearly two-thirds of respondents identified profitability, margins or cash-flow pressure as an issue keeping them awake at night. The cost of doing business was the leading barrier to growth, followed by inflation, rising input costs and difficulty finding suitably skilled staff.
These pressures do not exist in isolation. Higher input costs reduce margins. Compliance consumes time and resources. Skills shortages place more strain on owners, managers and key employees. Together, they can leave less capacity for the very investments that help businesses become more productive, adaptable and resilient.
Yet the Barometer also shows that family businesses are not retreating. Respondents remain focused on providing financial security for future generations, protecting family legacy, strengthening leadership, entering new markets and integrating AI into their processes, systems or offerings.
The strength of values, trust and long-term thinking
One of the sector’s greatest advantages is also one of its defining characteristics: the close connection between family, ownership and business. This can make decisions more complex, but it also creates a foundation of continuity, stewardship and commitment.
Survey respondents pointed to strong family values and culture, reputation and trust, agility, customer loyalty and dedicated employees as key contributors to success. These strengths are built over time through consistent behaviour, close relationships and a clear sense of purpose.
In an uncertain operating environment, that trust matters. It supports customer loyalty, strengthens supplier relationships and helps businesses make decisions with a longer horizon. For family enterprises, resilience is not only about absorbing pressure; it is about preserving what makes the business valuable while preparing it for what comes next.
Why capability matters more than ever
As family businesses grow, professionalise or prepare for transition, informal ways of working can become harder to sustain. Values and relationships remain essential, but they increasingly need to be supported by stronger leadership, clearer governance, reliable systems and better access to information.
This is especially important as family businesses look to technology. AI is already part of many long-term plans, with respondents seeing opportunities to reduce repetitive administration, improve visibility, support forecasting and strengthen customer and marketing activity. But the report also highlights a readiness gap: fragmented systems, inconsistent data, limited time and concerns about trust, accuracy and security can all slow adoption.
For AI and other digital tools to deliver value, family businesses need strong foundations. Integrated systems, clear processes and reliable data help turn new technology into practical business outcomes — reducing manual work, improving decision-making and freeing leaders to focus on growth.
Turning long-term intent into action
The message from the 2026 Family Business Barometer is clear: family businesses remain ambitious, resilient and committed to the future. But ambition alone is not enough. To thrive across generations, they need the capacity to act, supported by practical policy, trusted advice, capable leadership and systems that make it easier to manage complexity.
For family businesses, the opportunity is to protect what makes them distinctive while building the capability needed for the next stage of growth. For policymakers, industry bodies and advisors, the opportunity is to recognise the sector’s contribution and provide the support needed to help long-term businesses keep moving forward.
