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AH Cunningham & Associates
Business Facts

 

  • Family businesses comprise 80 to 90 percent of all business enterprises in North America (Family Business Review, Summer 1996)

 

  • Family and partnered businesses are the unheralded backbone of America's new economy. Who are they? A survey conducted during 2003, registered 24.2 million family businesses in America, representing a staggering 89% of business tax revenues, 62% of the workforce and 64% if the Gross Domestic Product, (GDP).

 

  • Family owned businesses account for 60% of total U.S. employment, 78% of all new jobs, and 65% of wages paid (Financial Planning, Nov 1999)

 

  • Among the companies listed on the Standard & Poor's 500 Index, 34 percent are family businesses. (Ronald C Anderson and David M. Reeb, Founding-Family Ownership and Firm Performance: Evidence from the S&P 500)

 

  • Nearly 40% of family businesses in America will be passing the reigns to the next generation over the next 5 years (BusinessWeek, August 11, 2003)

 

  • By 2050, virtually all closely held and family owned businesses will lose their primary owner to death or retirement. Approximately $10.4 trillion of net worth will be transferred by the year 2040, with $4.8 trillion in the next 20 years (Robert Avery, Cornell University, "The Ten Trillion Dollar Question: A Philanthropic Gameplan")

 

  • Only 40% of family owned businesses survive to the second generation, 12% to the third, and 3% to the fourth (Boston Globe, May 4, 2003)

 

  • Of CEOs due to retire within 5 years, 55% have not yet chosen their replacement (Arthur Anderson/Mass Mutual, 2003)

 

  • There are 1.2 million husband and wife teams running companies (NFIB 2003)

 

  • The number of family businesses run by women have grown 37% in the past five years with an average annual revenue was $26.9 million last year (Boston Business Journal, September 4, 2003)

 

  • 52% of family firms have hired at least one female family member full-time, while 10% employ two female family members (Arthur Anderson/Mass Mutual, 2003

 

  • The typical American family firm donates $50,000 annually to philanthropic causes, mostly to local, educational and religious organizations (MassMutual/Raymond Institute American Family Business Survey, 2003)

 

    Practical Business Advice; We Can Help!

    AH Cunningham & Associates, LLC

    A FranCnsult Company

    Pompano Beach, FL 33062

    Lexington, KY 40502

    Phone: 954-941-8847


    Email: ahc@ahcunningham.com