Family owned businesses are something of an Australian tradition, but could they be about to go the way of the dodo and the woolly mammoth?

In the modern, globalised economy, where tariffs are a dirty word, there's no room for sentimentality.

Head of the iconic Akubra hat brand Stephen Keir Jr, a brand which has stayed in the family five generations, knows the dangers.

He spoke with Business Week during the Family Business Australia Conference at Cairns Convention Centre on Friday.

"It is getting harder and harder to find the right people but the biggest problem we face is competing with cheap imported product," he said.

"At the same time we face heavy duties when we export."

About 80 per cent of Akubra hats are sold on the domestic market, with another 20 per cent exported, primarily to the US, Germany and, amazingly, the troubled land of Tibet.

Although it could be cheaper, Mr Keir said he would not dream of shifting production off-shore.

"We have a big emphasis on being Australian owned and Australian made and providing terrific customer service," he said.

"If we can maintain that we think retailers and customers will support us."

A big part of the FBA conference was discussing family succession plans and Mr Keir admits he is unsure if his three children will maintain the tradition.

"One is 12, one is eight and one is four so I don't know yet," he said with a laugh. "My 12-year-old is interested in sport."

The head of Far Northern family owned business CaPTA, Charles Woodward, said the challenge was to decide when to hand over the reins.

In a globalised world full of opportunity, Mr Woodward said research showed new generations were less likely to stay in the business.

In the case of CaPTA, Charles and Pip Woodward's three sons have all chosen to stay with the company, albeit in different areas.

Eldest son Michael Woodward runs Cairns Wildlife Dome, while Ben Woodward divides his time between London and the Far North in a marketing role.

Youngest son Peter Woodward and his wife Jaci now own the associated R n R Rafting and Jungle Tours.

"Whether they continue on in the family is their decision," Charles Woodward said.

"In our case we are fortunate in that tourism is a pretty interesting business with many opportunities."

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