Family businesses are unique and important
The greatest part of America’s wealth lies with family-owned businesses. They comprise 80% to 90% of all business enterprises in North America and create nearly 85% of all new jobs in the US.
Family businesses are thriving. More than 96 percent of respondents anticipate that their business will expand or at least remain the same size over the next year. Recent economic slowdowns, particularly in sub-prime lending, have not seemed to influence this key segment of the economy. The profound optimism of family business owners has them charging forward. (Family-to-Family: the Laird Norton Tyee Family Business Survey 2007)
Yet perception is not necessarily reality. Among family business owners who expect to retire in five years, fewer than half have selected a successor; of those expecting to retire in six to 11 years, less than a third have done so. Nearly a third has no estate plan beyond a will. (2007 American Family Business Survey)
It starts with family. 77 percent of all new business ventures established in the United States are founded with significant involvement of family in the business
They are not always small. Family-controlled firms now make up 19 percent of the companies in the Fortune Global 500, up from 15 percent in 2005
They think globally. 58 percent of small to medium enterprises are looking to emerging markets to sell their goods
Opportunities for all. 24 percent of family businesses are led by a female CEO or president, and 31 percent of family businesses indicate that the next successor will be a female
Family businesses are challenged. Only 30% of all family-owned businesses survive into the second generation, twelve percent will still be viable into the third generation, and only 3% of all family businesses operating at the fourth-generation level and beyond. Learn more.