Categories: Family-Owned Business

What’s the Average Life Span of a Family-Owned Business?

Family businesses are crucial to the overall US economy; more than that, though, they make a real, tangible difference to tens of millions of employees and countless community members all over the country. What is the average life span of a family-owned business? According to research, the mean age of family control in the core company – or the life span – is 60.2 years.

2nd, 3rd, and 4th Generation Family Business Stats

You’ve likely heard doom and gloom statistics about family-owned businesses; about three in 10 survive to the second generation, 13% to the third, and just 3% to fourth and subsequent generations. There are a variety of reasons for this, including financial pressures and lack of interest in continuing the family business. But behind the statistics, it is worth noting that most members of family businesses control two, three, or more concerns. Entrepreneurship, in a sense, runs in families!

When we hear that not even a third of family-owned businesses survive to the next generation, it’s easy to believe that most family-owned businesses “fail.” Often, this is not the case at all. Subsequent generations may hang on to the business in some form or sell it in order to pursue other endeavors. Is this a “failure”?

The Outlier: A 4th Generation Family Business

At the same time, a 3rd or 4th generation family business is a relative rarity. Not many continue operating with the original values, visions, and goals with which they were born. When this happens, it indicates a level of commitment to the founding ideals of the company and to the populations they serve.

Belmont Associates is a 4th generation family business with over 112 years of experience in commercial real estate investment, acquisition, ownership, and operation. We have developed a diverse portfolio that encompasses retail, office, and multifamily properties. As was true in our first days and years, we continue to hold ourselves to the highest standards of portfolio management mastery. It is important to honor our family’s professional legacy and continue serving our community.

Click here to learn more about Belmont Associates.

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