We know Intuit for its great money management software, QuickBooks. As a great product it has a great company behind it, which is seen in their desire to understand their customers. They undertook a review of the status of family businesses in the United States. You might be interested in what they came up with:
- According to the US Small Business Administration 90% of the 21 million small businesses in America are family owned.
- The largest of family owned businesses in United States is Walmart with $408 billion in revenues and 2.1 million employees (2009.) (The smallest are mom and pop stores like the green markets ubiquitous on corners in New York City.)
- Return on assets (ROA) is greater in family businesses, averaging 6.65% greater return than nonfamily firms.
- Family businesses account for 64% of the USA’s gross domestic product (GDP) i.e. ± US $5 trillion.
- 35% of Fortune 500 companies are family enterprises.
- The typical American family firm donates US $50,000 annually to philanthropic causes, mostly to local, educational, and religious organizations.
- The oldest US family business is Avedis Zildjan Company, Inc.(http://zildjian.com), started in 1623 in Norwell, Massachusetts.
- Family-based companies are responsible for 60% of the nation’s employment and 78% of new jobs created.
- Daughters are taking on larger roles in family businesses. Today nearly 60% of all family owned businesses have women in top management roles
- Nearly 40% of family businesses in America will be passing the reigns to the next generation over the next 5 years; and approximately $10.4 trillion of net worth will be transferred in United States by year 2040, with $4.8 trillion in the next 20 years.
- Yet, just 40% of family-owned businesses survive to the second generation, while only 13% survive to the third generation.