Family businesses account for up to 65 per cent of private sector companies and one in three jobs, according to new research.

The findings from the Institute for Family Business (IFB) show that there are three million businesses run by families with the vast majority classed as SMEs and 56 per cent of these are sole traders.

Grant Gordon, director general of the IFB, says: 'It is imperative that government and policy makers recognise the vital role that family businesses play, and we will be looking to work closely with the government to bolster further the family business sector for the benefit of all.'

Over nine million people are employed by family businesses and these organisations are also breeding grounds for entrepreneurial flair and talent, claims the IFB.

The body used the example of the twin Barclay brothers as a family business success story.

The pair became millionaires through their ownership and running of companies like the Daily Telegraph and Littlewoods.

According to the Sunday Times Rich List, the pair's combined wealth is supposed to total £1.8 billion.