2023 Connecticut Family Business Report
The 2023 Connecticut Family-Owned Business Report is a collaboration between CBIA, Hartford Business Journal, Hinckley Allen, Connecticut Small Business Development Center, Connecticut Wealth Management, and the Family Business Program at UConn.
Family businesses play an important role in their communities and contribute significantly to the state’s economy. While many companies faced challenges operating during the pandemic, family businesses largely remained resilient, focusing on operations and keeping their workforce employed.
This report outlines the makeup of family businesses in Connecticut, how they are faring in today’s economy, and their plans for the future.
This report—largely informed by an April-May 2023 survey of Connecticut family-owned businesses—helps us better understand the impact and needs of this critical component of the state’s economy.
- Most Connecticut family-owned businesses are small businesses: 93% have less than 200 employees and 60% have less than 25
- Connecticut family businesses have operated an average 58 years, with 37% featuring at least two generations of family ownership
- Most have at least a partial succession plan in place, although 32% are unsure if they will pass the business to the next generation
- 71% of Connecticut family businesses earned a profit last year, 16% posted losses, and 13% broke even
- 43% cited employee recruitment and retention as their top investment priority
- Proximity to customers was the main advantage to being in Connecticut for 25% of businesses, followed by quality of life (22%) and the skilled workforce (17%)
- High state taxes, over-regulation, and the state’s business climate were the biggest challenges for 32% of family firms, followed by healthcare costs (13%) and employee recruitment and retention (13%)
- Bank loans, lines of credit, or business earnings make up 79% of all family business financing
EXPLORE BY CATEGORY
Stay Connected with CBIA News Digests
The latest news and information delivered directly to your inbox.