Did you know? Family Business Statistics
Each year Family Enterprise USA (FEUSA) conducts a survey of family companies to learn what concerns and challenges affect family businesses. FEUSA then distributes the results to legislators, educators and others who need to be educated.
In the latest FEUSA survey, fielded between January 6, 2021 and March 31, 2021, 172 U.S. family business leaders representing 11 states shared their perspectives on the obstacles that companies faced in the aftermath of the Coronavirus outbreak, as well as the progress that family-owned businesses achieved as the pandemic continues bringing damage to the U.S. economy and the rest of the world.
The following are some key findings from the 2021 FEUSA Family Business Survey:
- According to the research, nearly 82% of participants work in family firms as CEO/President/Chairman or Senior Management.
- 58% have annual revenues of $10 million or more and 30% have revenues of $50 million or more, suggesting that the majority of participants are the owners of medium to large businesses.
- 35% of respondents have 50 to 500 employees, and 17% have more than 500.
- 52% of business owners claim they provide above-average salaries and benefits to their staff.
- The industry with the largest percentage of business owners was Manufacturing with over 23%, followed by Real Estate (11%), Food & Beverages (10%), Agriculture (8%), Construction (6%), and Healthcare (5%)
- Around 17% of company owners have been in operation for 100 years or more and 76% have been in business for more than 30 years.
BUSINESS CHALLENGES & CONCERNS
- 58% of family businesses saw a decrease in revenue in 2020, while 42% saw an increase. Business owners indicated that industry conditions, economic uncertainty, government regulations, finding qualified workers, and the Covid-19 pandemic were the greatest factors affecting the change in revenue, success and growth.
- To effectively manage the family business during the pandemic, 27% of them maintained employees and 18% secured staff through remote working. 16% of firms cut their expenses and 5% changed their product or service line. While the rest 8% cut their personnel and 1% closed their business.
- The proposal of business owners for a solution to the estate tax (death tax), which in many cases stops them from developing their business is:
- Make the present lifetime exemption permanent
- Decrease the tax rate to that of capital gains
- Eliminate the tax
- Raise the exemption amount
- The Estate tax (Death tax), reduced government restrictions, and tax code simplification are all the concerns of Economic Policy.
Consistent leadership is a top feature of stable family businesses. With the pandemic’s uncertainties and disruptions over the past two years, these family-owned companies have shown incredible adaptability and innovation to thrive and develop in the middle of a crisis. Family businesses will need to maintain their incredible resilience to meet new obstacles in the future.
Family businesses are critical to America’s economic development and must have their opinions heard. This goal can be achieved by filling out the 2022 FEUSA Family Business Survey.
CLICK HERE to participate in this year’s survey, which will take only few minutes of your time.