Quickread – Family Business by the Numbers

Our annual Family Business Speaker Series at the Ritz-Carlton is coming up on May 5th (reserve your spot).  Here are ten numbers about family business you may not have known:

16 – Percentage of family businesses that are cousin-owned. (source: From Siblings to Cousins: Prospering in the Third Generation and Beyond, by Craig Aronoff, Ph.D. & John Ward, Ph.D.)

24 – Percentage of family businesses with a female CEO or President as of 2007.  This is up from 10% in 2002 and 5% in 1997. (source: 2007 MassMutual/Kennesaw State University survey)

20-40 – Percentage of US GDP generated by family businesses as estimated by the Family Firm Institute.  This figure cannot be calculated with precision, and “Street Lore” estimates have pegged it at 40-60%.

51 – Median age of leaders in family businesses. (source: 2007 MassMutual/Kennesaw State University survey)

Over half of family businesses expect a leadership change by 2013.  The number is especially high right now due to baby boomers approaching retirement. (source: Harvard Business Publishing)

60-70 – Percentage of family businesses that are sold or liquidated after losing a founder to retirement or death. (source: Harvard Business Publishing)

70 – Percentage of family business leaders who expect other family members to assume at least one key senior role within the business. (source: 2007 PricewaterhouseCoopers survey)

95 – Percentage of registered American companies that are “family-controlled.”  These range in size from Fortune 100 behemoths like Wal-Mart and Ford to literal mom-and-pop operations. (source: 2007 PricewaterhouseCoopers survey)

77,000,000 – Americans employed by family businesses as of 1997 (source: Family Firm Institute, Inc.)

5/5/10 – The date of our Family Business Speaker Series with guest speaker Drew Mendoza.  There is no charge to attend, but reservations are required.  RSVP online.  View the flyer here.

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