10 Family Business Facts
- January 26, 2021
- Family-Owned Business
Family-owned businesses are not just important to the economy; they are its lifeblood. According to US Census data, they make up an astonishing 90% of all US companies. Their contribution cannot be underestimated – or underappreciated by the people they employ and serve. Following are some family business facts that prove their importance to all of us.
10 Family-Owned Business Statistics
- Family-owned businesses comprise 64% of the US gross domestic product.
- They account for 78% of all new job growth.
- These companies employ the majority of US employees.
- Family-owned businesses are less likely to lay off employees during downturns and economic difficulty, providing great stability.
- They also retain employees more effectively.
- More than 30% of family businesses survive to the second generation, 12% to the third generation, and just 3% to the fourth generation and beyond.
- Research shows that innovation in family businesses improves when subsequent generations are actively involved.
- While values are essential, successful family-owned businesses practice sound governance. The majority are controlled by advisory or supervisory boards, with objective non-family members holding the greatest number of seats.
- Research indicates that family-owned businesses are future-oriented. Rather than focusing on the next quarter, they prioritize strategies that put employees, customers, and community first.
- Family-owned businesses have strong cultures, and they experience higher scores in worker motivation, satisfaction, and leadership; further, 72% measure success differently. Again, it’s not a quarter’s performance that matters; it is service into the next generation.
Beyond the Family-Owned Business Statistics
Belmont Associates is a fourth-generation family business—a commercial real estate investment company with 112 years of experience in the acquisition, ownership, and operation of retail, multifamily, and office properties. We take pride in the high regard in which our tenants hold us, as we hold ourselves to the highest standards of portfolio management mastery in accordance with our family’s professional legacy.