Over 75% of all New Zealand and Australian businesses are family businesses, forming the backbone of our economy. Some may think that describing a business as a family is a red flag, and balancing the personal with the professional can be a challenge. But for many, doing business at this intersection is a strength that drives innovation, fosters loyalty, and builds lasting community connections.
Family businesses at the heart of the economy
“Across New Zealand, family enterprises are deeply woven into every sector,” says Nicole Pluck, New Zealand manager of the Family Business Association (FBA). “They’re building our towns, caring for our waterways, driving our trucks, growing and preparing our produce, serving our communities, protecting us, and showcasing New Zealand products and services both here and around the world.
“We still have a strong entrepreneurial spirit in New Zealand, and it’s often paired with a deep commitment to leaving a lasting legacy for future generations. That intergenerational mindset is one of the most inspiring forces shaping business today.”
The role of communication in succession
That legacy can be undermined if key conservations are left unsaid. Nicole says that one of the most common traps she sees family businesses fall into is letting assumptions replace conversations. Too often, younger family members only learn about their role, or lack thereof, after a relative has died or a business has already been sold.
“The antidote? Communicate early, communicate openly, and then communicate some more,” she says.
Passing knowledge across generations
Keeping communication lines open with predecessors is Nicole’s advice to the rising generation. “They hold a wealth of knowledge and experience that has shaped the business into what it is today. At the same time, don’t be afraid to bring fresh ideas and make your own mark. Your family values are the foundation; if you use them as guiding principles, they will help steer your decisions and set you on the path to long-term success.”
Setting boundaries between business and family life
Boundaries, too, need to be intentional. “Separate the dining table from the board table,” she says. Many families formalise this by creating a family charter, a set of rules outlining when and where business discussions should happen. The result is fewer misunderstandings and more time to simply be family.
Governance, structure, and succession planning
Danita Ferreira is a senior associate in Wynn Williams’ property and business advisory team. She agrees that informality is a common pitfall.
Why formality matters
“Operating without sound governance structures, clear roles, business plans, budgets, or even written contracts—including employment agreements, which are a legal requirement—can limit succession options and affect value, especially in the event of a sale,” she says.
Independent voices and professional advice
Danita encourages family businesses to seek independent voices on their boards or in management. An objective director or chief executive can challenge decision-making without the weight of family dynamics. She also cautions against “striking a deal” without seeking professional advice first, as what looks simple can often hide complex tax, financing, or risk issues.
Formal governing documents, such as a shareholders’ agreement and constitution, can serve as safeguards against disputes. Though not a one-size-fits-all solution, Danita says these documents act like a safety blanket that sets out clear rights, obligations and mechanisms if a dispute does arise. Independent legal advice for each family member also helps keep personal relationships intact by ensuring professional disagreements don’t spill over into private life.
Legacy, values, and long-term success
At their best, family businesses combine legacy with structure, commercial success with enduring values. Danita recalls advising on the $100 million sale of a Christchurch family company, originally founded almost 40 years earlier.
“Throughout the exponential growth of the business, the family values and humble origins remained, building great relationships with customers and providing impeccable service across New Zealand. When it came to the sale, it was essential for our client to know he was handing over to an entity that would retain these values and honour the legacy built by their family.”
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