Economic and political turbulence are the biggest threats facing family business, a major conference in Cumbria was told.

Speaking at The Family Business Conference held at Castle Green Hotel in Kendal on Thursday, Carlisle MP John Stevenson said that the economic environment and political uncertainty caused by Brexit are real challenges that family businesses need to tackle head on.

Predicting that a recession was around the corner for the UK, he said family businesses were well placed to cope with any economic downturn.

But he warned that Brexit was bogging the Government down and taking their attention away from supporting entrepreneurs and innovators.

“I believe we’re closer to the next recession than the last one 10 years ago,” he told the 100 delegates gathered at the conference, organised by the Family Business Network.

“In two to three years time I anticipate there will be a slight downturn – my hope is it a slight one that we come out of it quickly.

“Family businesses, as a general rule, are better placed to cope with downturns. They are more flexible, adapt better and take a-long term view. I am sure you will cope and prosper.”

Mr Stevenson – who also chairs the All-Party Parliamentary Group for Family Business – also said that Brexit was causing a “political vacuum” and was consuming the Government’s attention.

“The downside of Brexit it is affecting the bandwidth of what Government can do,” said the Conservative MP.

“Entrepreneurs, wealth creators and innovators are vital to the success of the economy, but there is a lack of support for them. I do hope my party will return to its roots by supporting business and creating the conditions for them to succeed.”

Mr Stevenson also revealed that he would be part of a new All-Party Parliamentary Group focusing on inheritance, and inheritance tax in particular – another important issue for family businesses.

“I think that is an area that will come under greater scrutiny and challenge,” he added.

Nationally, just under 90 per cent of all businesses are family owned. There are around 5 million family businesses which employ 12 million people and contribute 25 per cent towards GDP, and account for 20 per cent of all taxes going to The Treasury.

Mr Stevenson also stressed the importance to the Cumbrian economy.

“You hear a lot about large companies in Cumbria, but a lot of people are employed by family businesses and it contributes a huge amount to our GDP,” he said.

“You raise aspirations, encourage independence and contribute to local services and products. I want to thank you for your contribution to the local and national economy but also recognise the ‘added value’ of your commitment to the local community.”

The conference also heard from entrepreneur Denys Shortt OBE, who revealed the amazing growth of his company DCS Group, based in Banbury, Oxfordshire.

Mr Shortt – who has a home near Ambleside and is based between The Lake District and The Cotswolds – recounted how he started trading huge volumes of health and beauty products from a porta cabin in 1994 and achieved a turnover of £5 million in the first year.

Now, 24 years later, the company boasts sales of £200mand a workforce of around 400 people at its huge facility in Banbury, from where it serves clients including P&G, Unilever, Colgate, Palmolive, SC Johnson and retail chains including Spar, Costcutter, B&Q and Halfords.

“I feel very fortunate I have grown a business and want to pass that on,” he said.

“The business has never not grown in 24 years but it is getting hard. Growth is absolutely essential. If you’re shrinking you are kind of dying.”

Mr Shortt revealed how his son Charles, a biochemistry graduate, had become a director of the company after joining the businesses toiletry production arm.

“It is such as great feeling having him involved but also really handy, because he is part of me,” he said.

“He spots things I would spot. He is kind of like a ‘mini me’. He is a director of the company and invaluable on the bigger overview piece.”

Meanwhile, Professor Carole Howorth, chair of sustainable and ethical entrepreneurship at University of York, looked to tackle myths around family businesses and challenged the perception that succession was the only issue facing family businesses, as important as it is.

She challenged the perceptions that family businesses were small, old fashioned and rarely survived longer than three generations.

“To see a family business that survive more than three generations is quite rare, but research has found that family businesses tend to survive for longer and better than non-family businesses,” she said.

“Fewer fail and fewer close. They take a long-term perspective because family are involved. They are looking to the next generation and it makes them more passionate about their business. Family businesses are survivors.”

On size, she added: “Samsung is a family business and the biggest tech company in the world. Volkswagen and Facebook are both family businesses who are at the cutting-edge of what they do. Yes, a lot of family businesses are small in size, but we need to recognise they’re not all the same.”

The conference also heard from several family businesses sharing their personal insights and discussing issues ranging from succession and creativity to community involvement. They included Story Group and Story Contracting, Westmorland Limited, James Cropper, Grasmere Gingerbread, Roland Hill and Pioneer Foodservice.

Event organiser, Sue Howorth of The Family Business Network, said the event had been “fantastic”.

She revealed at the conference that the network would soon be expanding in to Lincolnshire and Northumberland having already branched out from its original home in Cumbria into Lancashire and Yorkshire in the past year.

“It has evolved across different locations, but I don’t want to dilute the network, I want to strengthen it,” she said, announcing a board would be created for the network and that Dave Clarkson, business development director at York and Lincoln-based Langleys Solicitors who formerly worked for Carlisle-headquartered Armstrong Watson, would become a non-executive director.

The conference also marked the launch of the Cumbria Family Business Awards 2019, which will take place at The Low Wood Hotel on the shores of Windermere, on March 8. The event will be hosted by Hairy Bikers, Cumbrian Dave Myers and Simon King.