family owned business statistics

Family Owned Business Statistics

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Family Owned Business StatisticsData
Percent of family owned businesses that remain in the family into the second generation30 %
Percent of family owned businesses that remain in the family into the third generation12 %
Percent of family owned businesses that remain in the family into the fourth generation3 %
Number of husband and wife teams running companies1,200,000
Percent of family owned businesses led by a female CEO or President24 %
Percent of family owned businesses that indicated the next successor is a female31.3 %
Percent of family owned businesses that have women in top management positions60 %
Percent of Fortune 500 businesses that are family-controlled35 %
Percent of U.S. gross domestic product that family businesses account for64 %
Percent of the countries employment generated by family businesses62 %
Percent of all new jobs created by family businesses78 %
Average annual workforce turnover of family businesses9%
Average annual workforce turnover of non-family businesses11 %
Average amount donated annually by a family run business$50,000
Percent of family firms that were controlled by supervisory or advisory boards94 %
Percent of family business owners that expect to retire by 201740.3 %
Amount of family business owner net worth that will be transferred by 2040$10.4 Trillion
Percent of those retiring who have not selected a successor47 %
Percent of family business owners who have no estate plan beyond a will31.4 %
Reasons for Family Business Succession FailurePercent
Problems with communication and trust60 %
Lack of preparation from the next generation25 %
All other issues (e.g. poor tax or financial planning, legal advice, etc.)15 %
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Statistic Sources & References
Sources: Harvard Business Review, Cornell University, Conway Center
Content Author: Statistic Brain

Date research was conducted: September 6, 2016

Family Owned Business Statistics

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