Did you know, that…
-Family businesses comprise 80 to 90 percent of all business enterprises in North America (Family Business Review, Summer 1996)
- Family owned businesses account for 60% of total U.S. employment, 78% of all new jobs, and 65% of wages paid (Financial Planning, Nov 1999)
- Among the companies listed on the Standard & Poor’s 500 Index, 34 percent are family businesses. (Ronald C Anderson and David M. Reeb, Founding-Family Ownership and Firm Performance: Evidence from the S&P 500)
- Nearly 40% of family businesses in America will be passing the reigns to the next generation over the next 5 years (BusinessWeek, August 11, 2003)
- By 2050, virtually all closely held and family owned businesses will lose their primary owner to death or retirement. Approximately $10.4 trillion of net worth will be transferred by the year 2040, with $4.8 trillion in the next 20 years (Robert Avery, Cornell University, “The Ten Trillion Dollar Question: A Philanthropic Gameplan”)
- Only 40% of family owned businesses survive to the second generation, 12% to the third, and 3% to the fourth (Boston Globe, May 4, 2003)
- Of CEOs due to retire within 5 years, 55% have not yet chosen their replacement (Arthur Anderson/Mass Mutual, 2003)
- There are 1.2 million husband and wife teams running companies (NFIB 2003)
- The number of family businesses run by women have grown 37% in the past five years with an average annual revenue was $26.9 million last year (Boston Business Journal, September 4, 2003)
- 52% of family firms have hired at least one female family member full-time, while 10% employ two female family members (Arthur Anderson/Mass Mutual, 2003)
The typical American family firm donates $50,000 annually to philanthropic causes, mostly to local, educational and religious organizations (MassMutual/Raymond Institute American Family Business Survey, 2003)
