Family Business Facts
- Family businesses comprise 80% to 90% of all businesses in North America.
- Family firms contribute 64% of the nation’s gross domestic product (GDP) and employ 62% of the U.S. workforce.
- More than 30% of all family-owned businesses nationwide survive into the second generation; 12%, into the third generation; and 3%, into the fourth-generation and beyond.
- In a study of S&P 500 firms (Anderson and Reeb, 2003)
- Young family firms and old family firms (50-year-old threshold) outperform non-family firms.
- ROA (return on assets) is greater in family businesses, which have a 6.65% greater return than nonfamily firms.
- Families own their businesses for an average of 78 years.
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