According to a ‘PRIMA International research Report’ report conducted by financial advisers grant Thornton, 35% of owner managers feared external influence from shareholders.
The second most feared aspect of business life for owner managers was the potential greed of external shareholders, with 34% revealing the fear.
But Andrew Godfrey, Grant Thornton PRIMA inernational director, warned owner managed businesses to recognise the benefits of shareholders. He added: ‘If they want to prosper, owner-managers should overcome their suspicions about perceived lack of control.
‘It would appear that family businesses are failing to understand the benefits that external shareholders can bring. Equally there may be a need for external shareholders, like venture capitalists, to alleviate certain fears of UK owner managers including corporate governance burdens.’
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