Family-owned businesses form the backbone of the American economy. With approximately 5.5 million such enterprises operating across the United States, these businesses range from small operations run by couples to large corporations. At FAMLE Business Advisors, we recognize the significant contributions these businesses make, as well as the unique challenges they face.

Significant Contributions to the Economy

Family-owned businesses are economic powerhouses:

• Economic Powerhouse: Contributing 57% of the U.S. GDP, which amounts to about $8.3 trillion.
• Employment Giants: Employing 63% of the U.S. workforce and responsible for 78% of all new job creation.
• Diverse in Size: From 1.2 million small businesses operated by husband-and-wife teams to Fortune 500 companies, family businesses come in various sizes.

Economic Impact

These businesses are integral to the economic fabric of the nation:

• GDP Contribution: They account for 64% of the U.S. gross domestic product.
• Prevalence Among Small Businesses: 19% of the 28.8 million small businesses in America are family-owned.

Overcoming Challenges

Despite their contributions, family-owned businesses face distinct challenges:

• Generational Transition: Only 30% survive the transition from first to second generation ownership, 12% to the third generation, and a mere 13% remain family-owned over 60 years.
• Succession Planning: Nearly 47% of family business owners expecting to retire in five years do not have a successor in place.

Strategies for Success

To ensure longevity and success, family businesses focus on:

• Good Governance: 94% are controlled by supervisory or advisory boards.
• Next Generation Involvement: Over 40% include younger family members on boards and committees to nurture business and management skills.
• Strong Values: 74% report having stronger values and culture, emphasizing customer and employee orientation.

Family-owned businesses are known for their strong values, long-term perspective, and deep commitment to their communities. However, sustaining success across generations requires effective governance and strategic succession planning.

Join Us at FAMLE Business Advisors

At FAMLE Business Advisors, we are dedicated to helping family-owned businesses thrive. Whether you need expert advice on succession planning, governance, or strategies to engage the next generation, our team is here to support you.

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Your family’s legacy and business success are our top priorities. Join our community and access the resources and support you need to ensure your family business thrives for generations to come.