The health of family-owned and run businesses is important, given that in aggregate, they account for a large chunk of economic activity around the world. And their specific challenges often call for the advice and guidance of wealth managers and private bankers.

A study of the world’s 500 largest family businesses shows that they are major economic growth drivers, with revenues now at $8.8 trillion, up 10 per cent from where they were in 2023.

The findings come in the 2025 EY and University of St Gallen Global 500 Family Business Index. 

The total revenues of these businesses, if compared with GDP by country, equate to the world’s third largest economy, ranking only behind the US and China. 

Such reports seek to lift the lid on what drives family firms. Wealth managers and private banks – some of them family-owned themselves – are interested in the sector because they can advise owners about succession, transfer and capital-raising, for example.

Europe remains home to almost half (47 per cent) of the companies on the index, with North America housing 29 per cent and 18 per cent being based in Asia. Regarding industry sectors, retail has the largest representation, leading with 20 per cent. The second largest sector is consumer (19 per cent), the third is advanced manufacturing (15 per cent) and the fourth is mobility (9 per cent), the report said.

Some 47 per cent have engaged in one or more transactions in the last two years and of the disclosed deals 34 per cent completed transactions exceeding $250 million.

Seeking long-term value, being agile and having an innovative approach is what gives these businesses a strategic advantage and speaks to why 34 per cent of the companies have more than a 100-year legacy and 85 per cent have been operating for more than 50 years. At the top end of the spectrum, a Japan-based company has been running for more than 400 years, and two European companies have been operating for more than 300 years. The report notes that the world’s oldest company in its index, coming in at 412 years, is Japan’s Takenaka Corporation.

Family involvement
Family members continue to play an active role in leading and managing family enterprises. For nearly half (45 per cent) of the companies on the Index, a family member acts as CEO. Nearly one quarter of all board seats (23 per cent) are held by family members. 

Europe has a strong tradition of family enterprises, driven by Germany, the second-largest contributor to the Index in relation to number of companies (78), combined revenues of $1.13 trillion and number of employees (3.35 million). Overall, more than half (50.4 per cent) of the companies in the Index are based in Europe, Middle East, Africa and India. Their combined revenues are $3.46 trillion – 43.2 per cent of the total value of the Index. India, with the largest population in EMEIA and the second largest in the world, broke into the top 10 largest family enterprises for the first time in this year’s Index. This is thanks to conglomerate, Reliance Industries, which climbed from 12th place to 10th place in the Index. 

The number of companies based in Asia-Pacific climbed to 79 in the 2023 Index, up from 74 in 2021.

The US contributed nearly one quarter (23.6 per cent) of featured companies and more than one-third (34 per cent) of collectively-generated revenue. The US alone contributed 80.2 per cent ($2.72 trillion) of the combined revenue generated by the Americas on the 2023 Index. Seven out of the 10 biggest family enterprises globally are based in the US.