Family Business Facts

America's lifeblood is Family Business

• Driving the economic engine
• Preserving the family
• Creating passion for what you do

Statistics

• 90% of all businesses are family businesses*
• Produce 1/2 GNP*
• Creates 80% of new jobs*
• 1/3 Fortune 500 companies**
• Biggest wealth transfer: $4.8 trillion in the next 20 years***

Succession Data

• 33% survive to 2nd generation
• 11% survive to 3rd generation

Causes of Failure

• Lack of succession planning
• Mismanagement of family business roles
• Generational transitions

• 1/3 of Family Businesses have an estate plan
• 1/3 of Family Businesses have a stategic plan
• 3% of Business owners have a written implementation plan

Business Week Cover Story, November 10, 2003 Reframes family business:

Family enterprises constitute some of the largest companies in America in terms of performance of the large public company.
When done correctly, involving the family constitutes a stategic advantage.

5 Key factors Business Week cites for family companies outperforming non-family companies:

1. Long-term development, training and retention of leaders.
2. Tight-knit family members can move quicker than bureaucracies.
3. Invest in employee loyalty to increase productivity and reduce turnover.
4. Reinvest in the company with a long-term perspective.
5. Governance by people with an emotional and financial investment.