In the past, many sources have reported that family businesses constitute more than three-quarters of U.S. companies. However, last year, “The Biggest Myth about Family Businesses” in Forbes challenged that hefty number. Despite a lower estimate, this statistic and others still show that family businesses make undeniable and significant contributions to the economy.
When you walk around your own community, you can’t miss dozens of mom-and-pop shops. If you live in the same area as your ancestors, you may recall stories that your grandmother told about shopping at the same corner grocery. As a cornerstone of many neighborhoods around the country, here are some interesting points about family-owned and -operated companies.
Fascinating Facts about Family Businesses
According to the recent article in Forbes, here are the ways that family businesses impact the economy:
● They account for 50% of U.S. gross domestic product.
● They generate 60% of the country's employment.
● They create 78% of all new jobs.
Given their substantial role in the U.S. marketplace, family businesses often provide continuity for consumers over time. In fact, the Family Business Alliance recently reported the following:
● More than 30% of all family-owned businesses survive into the second generation.
● Twelve percent will still be viable into the third generation.
● Only 3% of all family businesses survive into the fourth generation and beyond.
Secrets to Family Business Success
Do you wonder about the reasons that a family business thrives? With the added complication of personal relationships mixed into business transactions, some find it difficult to navigate these choppy waters with ease. Despite these challenges, members of successful family businesses often set aside personal differences and remain focused on the good of their company.
According to Business News Daily, “Focus on ‘Family’ Is Key to Long-Term Family Business Success.” In fact, “What truly drives many family businesses is the sense of connection and identity the owners and their family members feel with the business.”
Here are some other reasons that these companies prosper:
• Sense of upholding and honoring a long family tradition
• Commitment to supporting relatives and serving the community
• Belief in the benefits of the company’s products and services
Think, for a moment, about some of the family businesses that you frequent. Can you identify a few keys to their success? The following case study of a second-generation business, which has endured for more than 40 years, will offer some additional tips.
Insights from Thriving Second-Generation Family Business
One second-generation family business, providing home interior design in New Jersey, offers insights for others’ success. Greg and Barbara Powers founded Window Designs By Powers. Now, Greg Powers Jr.-–the second generation–is operating the business with his wife Dana Powers, the head designer.
Here are some reasons that this family business has thrived since 1971:
• Knowledge of every aspect window drapes, curtains, blinds, custom bedding and upholstery
• Production of custom window treatments in full service design studio on the premises
• Great pride in their products and services
• Commitment to exceed customer expectations
• Same location for more than 40 years
To learn more about this family business, visit Window Designs by Powers at 112 Paris Avenue. To find the most qualified experts in home interior design in New Jersey, call now! When you talk with them, ask them to share their secrets for family business success.
