Skip to main content

Original text

Powered by Google TranslateTranslate
Powered by Google TranslateTranslate
Infographic: The Family Business—Successes and Obstacles
June 13, 2024
Download Image

Of the 28.8 million small businesses in America, 19% are owned by families. “Family-owned” means “any business in which two or more family members operate the company, and the majority of ownership or control lies within a family.”

Our latest infographic examines the achievements and challenges for American family businesses.

Are family businesses successful?

  • Family-owned businesses employ 60% of the US workforce and create 78% of all new jobs.
  • Family businesses generate 64% of America’s Gross Domestic Product (GDP).

Family-owned businesses range in size:

  • 1.2 million of family-owned small businesses are run by a husband and wife.
  • They can range from 2 people to thousands in a Fortune 500 company.

Challenges family businesses face:

  • 30% of family businesses survive the transition from first to second generation ownership.
  • 12% survive the transition from second to third generation.
  • Only 13 percent of family businesses remain in the family over 60 years.
  • And 47% of family business owners expecting to retire in five years DO NOT have a successor.

How do family businesses survive?

  • Good governance - 94% of family-owned firms are controlled by supervisory or advisory boards.
  • Focus on the next generation - Over 40% of companies included younger family members on boards and committees to nurture business and management skills.
  • Customer and employee-oriented - 74% of family-owned firms report stronger values and culture.


Infographic: The Family Business—Successes and Obstacles
young asian family standing in their business fist bumping each other
11 Reasons Why Family Businesses Fail
From hiring objective leadership to establishing healthy boundaries, find ways to help you establish your family business as a thriving enterprise for years to come. 
712 H St NE PMB 98848
Washington, DC 20002

Copyright © 2024 SCORE Association,

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

Chat generously provided by:LiveChat

In partnership with
Jump back to top