- The greatest part of America’s wealth lies with family-owned businesses. Family firms comprise 80% to 90% of all business enterprises in North America. (J.H. Astrachan and M.C. Shanker, “Family Businesses’ Contribution to the U.S. Economy: A Closer Look,” Family Business Review, September 2003)
- Family Owned Businesses contribute 64% of the GDP or $5,907 billion ($5+ trillion) and employ 62% of the U.S. workforce. (J.H. Astrachan and M.C. Shanker, “Family Businesses’ Contribution to the U.S. Economy: A Closer Look,” Family Business Review, September 2003)
- More than 30% of all family-owned businesses survive into the second generation. Twelve percent will still be viable into the third generation, with 3% of all family businesses operating at the fourth-generation level and beyond. (Joseph Astrachan, Ph.D., editor, Family Business Review)
- In a study of S&P 500 firms (Anderson and Reeb, 2003):
- 33.6% are family businesses in which the founding family has, on average, 18% of firm equity.
- Family firm performance is greater when founding families maintain an ownership stake.
- Young family firms and old family firms (50-year-old threshold) outperform non-family firms.
- ROA is greater in family businesses, with a 6.65% greater return than non-family firms.
- Families own for an average of 78 years.
- Family firm CEOs earn on average nearly 10% less than their non-family counterparts.
- The oldest Family Owned Business operating in the United States is the Zildjian Cymbal Co. of Norwood, MA. Founded in 1623 in Constantinople (Istanbul, Turkey) and moved with the family to the United States in 1929. (Family Business Magazine, Spring 2001)
- The oldest family owned business still operating as a family business is the Roykan Hoshi Hotel in Komatsu, Japan founded in 717.
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