Australia has been pushing an innovative agenda over last several years, ever since the introduction of Malcolm Turnbull to the prime minister's office. The focus has been on making it easier for small businesses to grow by limiting the challenges to innovation many face on a daily basis. 

When we think about innovation, family-owned businesses do not always come to mind. However, many of them are well-versed in the digital world, using cloud-based business software and bringing in skilled staff. 

Family business and the Australian economy

Family businesses tend to be romanticised as the heart and soul of the Australian economy, and while this can be blown out of proportion, they are undoubtedly an essential element. According to the Australian Small Business Commissioner, they comprise 70 per cent of all commercial entities in Australia.

While many of these are smaller, even micro businesses, there are also a number of medium to large privately-owned businesses. Linfox Australia, for example, is one of Australia's largest family owned businesses.

Business Insider points out that the logistics and supply chain company has a market share of around 4.5 per cent in the road freight industry. It also generates $6 billion a year in revenue and employs close to 23,000 people. 

Family businesses are positioned well for innovation

While family businesses can face a variety of obstacles, from money-hungry in-laws to uninterested children, there is a common challenge: Innovation. However, a recent study from the Center for Family Enterprise at the Kellogg School found that family businesses are well placed to drive innovation. 

Clinical Professor of Family Enterprise Justin Craig pointed out that family businesses should look to combine a C-suite skillset with an F-suite mindset. What this means is that family businesses need to ensure their leaders have the right capabilities crucial to running a for-profit enterprise, while staying loyal to the virtues concomitant with a family business, such as long-term vision, community engagement and clear and present values. 

"The key is preserving the founders' vision while making sure the business can deliver on its strategy," Craig said. 

"Both sides need to understand the viewpoint of the other. The C-suite needs to understand the nuances and idiosyncrasies of the family's tradition and values, and the F-suite needs to understand the importance of driving growth." 

The first step is giving the next generation the right skills to lead business innovation. One way to accomplish this is through Jiwa Financials training. This cloud business software can help leaders, managers and other staff keep track of important processes and resource allocation while executing operational changes on the fly.

If you would like to know more about driving innovation, talk to an expert today.