19+ Family Business Statistics You Need to Know
In an era where massive corporations and tech startups often steal the spotlight, family businesses remain the backbone of many economies worldwide.
We’ve compiled 19 eye-opening family business statistics to bring these powerhouse enterprises’ longevity and global impact into the spotlight.
- Two-thirds of businesses around the world are family-owned.
- The 500 largest family-owned enterprises generate more than $8 trillion in revenue.
- Of the total global GDP, family enterprises contribute 70%.
- 83 million Americans work for a family business.
- 14% of family business owners expect to grow “quickly and aggressively” by 2025.
- Women serve as CEOs in 24% of family-run companies.
- 94% of business owners in Madagascar and 95% in Panama have family members in management positions.
- 13% of family businesses remain in the family for more than 60 years.
- Rising interest rates and inflation concern 75% of North American family-owned enterprises.
- Over 60% of North American family businesses do not have a formal succession plan for passing the enterprise to the next generation.
19 Intriguing Family Business Statistics
These 19 family business statistics are sourced from around the world, giving a fascinating into this world.
Two-Thirds of Businesses Around the World Are Family-Owned
The ubiquity of family-run businesses is often underestimated in terms of both presence and impact on the larger economy. However, given that the majority of companies fall into this category demonstrates their enormous influence (United Nations Conference on Trade and Development).
62% Of Business Owners Reported That the Majority of Their Employees Are Their Family Members
Families often foster higher levels of professional commitment and trust, though the dynamic is not without its challenges (Global Entrepreneurship Monitor Family Entrepreneurship Report).
The 500 Largest Family-Owned Enterprises Generate More Than $8 Trillion in Revenue
Family businesses have thrived over the last two years, as the 2023 results represent a 10% increase in generated revenue since 2021 (EY and University of St. Gallen Family Business Index).
Of the Total Global GDP, Family Enterprises Contribute 70%
Family-owned doesn’t mean small-scale. These enterprises are significant contributors to both global wealth and local economies (United Nations Conference on Trade and Development).
Family Businesses Account For 78% Of New Jobs Created in the United States
Though often compared to pillars of their local community, the family-owned business is more like an engine driving job creation forward faster than franchises or multinational corporations (Small Business Trends).
83 Million Americans Work for a Family Business
This number remembers the majority (59%) of the total workforce (Kellogg School of Management at Northwestern University).
Seven of the Top 10 Most Lucrative Family Companies in the World Are Based in the United States
These enterprises include (EY and University of St. Gallen Family Business Index):
- Wal-Mart, inc.
- Berkshire Hathaway, Inc.
- Cargill, Inc.
- Ford Motor Company
- Koch Industries, Inc.
- Comcast Corporation
- Dell Technologies, Inc.
14% of Family Business Owners Expect To Grow “Quickly and Aggressively” by 2025
Businesses that expect to experience aggressive growth also expect to sustain it by building brand trust internally and with their market (PwC Global Family Business Survey).
In a Survey of 172 American Family Business Leaders, 52% State That They Offer Above-Average Pay and Benefits Packages
Family businesses have the competitive edge in retaining talent with fair compensation, challenging the perception that only larger corporations have the resources to do so (Entrepreneur & Family Business Council) .
Women Serve as CEOs in 24% of Family-Run Companies
Compared to the 15% of total companies with a female leader, this statistic demonstrates family-owned businesses’ openness to equitable leadership opportunities regardless of gender (Small Business Trends) .
74% of U.K. Family Businesses Contribute to Their Local Community
A further 47% engage in philanthropic giving (UK Parliament House of Commons Library).
Family-Owned Businesses Are the Second-Most Trusted Enterprise Type According to Americans
Comparatively, 67% trust small businesses, 61% trust franchises, and 59% trust corporate multinationals (New York Post).
Across 58 Countries, the Most Significant Percentage (43%) of the 791 Surveyed Family Businesses Had Annual Revenues of Less Than $50 Million in 2019
The remaining distribution was as follows (Deloitte’s Family Business Center):
- 37% had annual revenues between $50 million and $250 million
- 16% had annual revenues between $250 million and $1 billion
- 5% had annual revenues of $1 billion or more
94% Of Business Owners in Madagascar and 95% In Panama Have Family Members in Management Positions
These rates are significantly higher than the global average of 40% in each county, which China as an outlier at 9% (Family Business United).
The U.K Recorded 4.8 Million Family Businesses in 2020
Family-owned enterprises in the U.K. have a similar impact on the national economy as they do in America, representing 85.9% of all private sector companies (UK Parliament House of Commons Library) .
30% of Family Businesses Survive the Transition From First-Generation Ownership Through Second-Generation Ownership, the Equivalent of 60 Years
However, these numbers fare better than publicly traded enterprises, with an average lifespan of 15 years or less than a single generation (SCORE).
13% of Family Businesses Remain in the Family for More Than 60 Years
In the same study, businesses that survive the transition attribute their success to good governance and having younger family members on the board to foster their management skills (SCORE).
Rising Interest Rates and Inflation Are a Concern for 75% of North American Family-Owned Enterprises
Many of the respondents in the study cited being more concerned about the current economic climate than thinking about succession planning (Brightstar Capital Partners).
Over 60% Of North American Family Businesses Do Not Have a Formal Succession Plan For Passing the Enterprise to the Next Generation
The most common reasons for not creating a formalized plan included 29% who said they were uncomfortable discussing the topic, 22% who don’t feel anyone in the next generation is qualified to inherit the business, and 21% who haven’t invested the time to do so (Brightstar Capital Partners).
Final Thoughts
These family business statistics are much more than quaint relics of a bygone era.
Instead, they are a rich spectrum of establishments running the gamut from the world’s most profitable corporation to your favorite mom-and-pop shop on the corner.
