Family-owned businesses have long served as a mainstay of main streets across the U.S. and a key player in the national economy. Today, over five million family-owned businesses make up “57% of America’s gross domestic product and 63% of our workforce.” Be it a two-person partnership or a Fortune 500 venture, these familial operations often find themselves juggling the demands of commerce with the intricacies of family dynamics.
In the second edition of their Family Business Survey, the First Bank Center for Family-Owned Businesses partnered with market research firm, MacKenzie Corporation, to glean insight into the current state of U.S. family businesses.
The results were largely optimistic with respondents indicating increased confidence in the direction of the economy (61% in 2024 versus 49% in 2023) and anticipation of business and revenue growth (75% in 2024 versus 66% in 2023).
Other notable findings:
- Measuring “Success” | While profitability remains the top metric (55%), other factors such as family unity & togetherness (28%), continued succession (27%), and family legacy building (23%) were significant considerations when it came to defining success within the business.
- Achieving “Success” | The path to profitability is paved with soft skills, it seems. When asked what they feel are “the most important skills next-gen leaders need to be successful,” people management (56%) and passion for the business (55%) were at the top.
- Brand Identity | It’s no surprise that “family-owned” is a label many operations proudly incorporate in their marketing and advertising. On average, 70% of businesses surveyed included being “family-owned” within its branding strategy.