Back in the past, farms were the earliest forms of family business. The relatives worked together to grow, produce, and export wine, olive oil, grain, and many others. The business idea hasn’t disappeared yet. On the contrary, it is still popular in numerous countries worldwide. In our days, statistics show that over 570 million farms are managed by families and the business is predominant in global agriculture. Do you know why family owned businesses are the pumping heart of local economy?
How can your family business support the economy?
According to the latest records, family businesses employ over 50% of the US workforce. Plus, they generate over 50% of US business revenue. They can be found in all segments of the economy. Did you know that Walmart is a family business? However, not all of them are as large as Walmart; most of the businesses are small and dominate in retail and farming.
These companies combine the family system with the traditional business system. Because they get the work done using the time and resources of the family and benefit from the support of the community, they usually achieve the success desired. As a consequence, the small businesses trigger economic growth and are a vital economic engine.
The numbers are edifying: the family businesses bring more than $10 trillion to the US economy. However, working with the family members can be both blessing and a curse. After working for decades in their shop, the parents leave the business in the hands of their children. They may keep the heart of the firm pumping, or decide to sell it. That’s why today’s businesses don’t include the members of the family as often as before. However, family businesses still support the economy, especially in smaller towns.
The heart of local economy beats due to family unity
Notable examples of family owned businesses are Volkswagen, Berkshire Hathaway, Ford, Exor, Koch Industries, Cargill, Louis Dreyfus Holding, Comcast, The Long & Foster Companies, and numerous others. Do you frequently purchase fresh produce from the local markets? Chances are the fresh fruits, legumes, and veggies come from family owned businesses.
In current days, more and more people consider starting a family owned business. 35% of Fortune 500 companies are controlled by families. In North America, approximately 80-90% of all businesses are run by families. In the year 2011, there were 113.4 million non-farm private sector workers. The small companies with fewer than 500 workers employed a significant number of 55 million people. As for the larger businesses, they hired 58.4 million individuals. The family enterprises that had fewer than 20 employees gave work to 20.2 million.
You have the evidence. Family owned businesses are the pumping heart of the local economy. They are relevant and dynamic participants in the world economy. What factors ensure their longevity? The family unity, commitment to quality, and concern and care for the employees. The family members share their priorities, strengths, weaknesses, need, and goals, and they have the ability to plan and contribute to a unified vision. No wonder why the family owned businesses are so profitable!