Nearly three-quarters of family firms in Europe feel optimistic. - Despite the economic crisis, 70% of family businesses in Europe are feeling optimistic, according to the third edition of the European Family Businesses Barometer published by consultants KPMG and EFB (European Family Businesses) that measures confidence in family firms in Europe. A KPMG expert in global family business growth says the European family businesses have a long-term vision and do not let themselves be put off by a disturbing blip in the environment. The publication stresses that confidence in the future is as high now as six months ago. It has risen sharply on the December 2013 level of 54% of family firms feeling optimistic. Only 5% of family companies feel pessimistic today, compared with 12% a year ago. Fifty-four percent of respondents (44% in June 2014) say their turnover grew over the past six months. Some 48% of companies polled increased their staff members over the past six months, with only 10% reducing staffing. The barometer shows that seven family companies are active outside the EU, but prefer to keep foreign business at current levels rather than expanding it. In terms of investment, 86% of the polled companies are planning new investment as part of their strategic plans (compared with 75% in June 2014 and 79% in December 2013). They prefer to invest at home and in the European market rather than expanding outside the EU. Only one in three family firms say that its success is due to business abroad. Companies that do not sell products on other markets say that this is because: 1) their products cannot be sold on other markets (34%); 2) they have sufficient local outlets (24%); and 3) they do not have enough confidence in foreign markets (20%). The biggest challenges mentioned by family firms is recruiting qualified staff, which was mentioned by 23% of family firms last year, but now stands at 42%, exceeded by falling profits (mentioned by 47% of pollsters). This is slightly better than in June 2014 (49%), but far worse than in December 2013 (38%). The third factor mentioned is the cost of labour, mentioned by 15% of family businesses in December 2013 and 29% in December 2014. Some 80% of family firms say they didn't have any financing problems over the past six months, a sharp rise considering that 49% of firms mentioned financing problems a year ago. Three out of four family firms still use traditional finance sources such as bank loans (47%) or their own resources (28%). (IL)