Managing a family business requires balancing complex dynamics aligning family relationships with commercial realities, passing leadership down through generations, and adapting to rapidly shifting economic environments. Just like we did in 2022 and 2024, we also conducted an expanded family business survey between March to June 2026 to shed light on several family business critical dynamics. One of the key finding of the 2026 Family Business Survey is that while many (virtually all) family businesses managed to grow their top lines revenues only 37% translated that growth into larger bottom line profits. Why is that?
The 2026 Family Business survey examined the core pillars driving modern family firms, uncovering where leaders focus their energy and where operational pressures build:
• Corporate Governance & Oversight: Evaluating board structures, informal decision-making habits, and the growing role of independent non-executive directors.
• Strategic & Succession Planning: Examining how families map out long-term strategic blueprints and prepare next-generation leadership.
• Digital Transformation & AI: Measuring how firms leverage technology, process automation, and artificial intelligence to address labour shortages.
• Workforce & Labour Challenges: Analysing strategies to recruit, upskill, and retain talent while managing rising wage bills.
• Dispute Resolution & External Advisory: Understanding how families handle conflicts and engage external experts to protect business continuity.
A central focus of this year’s survey was assessing post-pandemic financial performance from 2022 to 2025. While the local economy offered significant expansion opportunities, the findings reveal a distinct split in how family businesses performed, Nearly 37% of family businesses experienced an increase in turnover accompanied by lower profits. These firms scaled their top-line revenues, but rising operational costs, especially due to higher labour expenses eroded bottom-line margins—a phenomenon known as profitless growth. A further 18.2% of respondents managed to increase their turnover but recorded stagnant profits, reflecting a balancing act were increasing operational costs entirely absorbed revenue gains. Conversely, 37% achieved simultaneous growth in both revenue and profitability, leveraging clear strategic planning and scale efficiencies to defend their margins. This however means that 55% of firms have seen an increase in turnover and declining or stagnant profits.
Ultimately and most importantly, the survey data gives direct insights as to why certain family business managed to scale up and achieve higher profits and why some family businesses scaled-up and had stagnant or decreasing profits.
To unpack these results and explore practical solutions, the Family Business Conference with the title “Turning Growth into Profit” will be held on 1st October 2026 at The Malta Chamber of Commerce, Enterprise and Industry. This conference is organised jointly by the Malta Chamber. EMCS Advisory and the Family Business Office.
This landmark event will dive deep into the 2026 survey data. Attendees will gain exclusive insights into cross-tabulated findingsas to what shields profit margins and ensures multi-generational success.
Whether you are a founder, a next-generation successor, a family business CEO or GM or a board director, this conference offers an invaluable platform to gain practical blueprints, benchmark your enterprise against industry peers, and navigate the future with confidence. Mark your calendar for 1st October and join the conversation at The Malta Chamber.
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