Family-owned businesses have shown remarkable resilience and prosperity in the face of a fluctuating global economy and challenges like the COVID-19 pandemic. Far from succumbing, these businesses have outperformed non-family counterparts by 33 percent from 2017 to 2022. They account for more than 70 percent of the global GDP and provide 60 percent of worldwide employment.
Internal factors such as the ability to adapt and deep commitment from primary stakeholders are key contributors to these businesses’ success. Strong in-family relationships and preserved company values handed from one generation to the next also play influential roles. Businesses in the family-owned category contribute positively to economic stability and growth, helping to keep the economy afloat even during challenging financial periods.
Statistics show that 21.7% of companies operating for less than 2 years are family-owned. This trend extends to older businesses too, with 30.9% being family-owned. Such businesses also employ between 10-499 employees.
Resilience of family-owned businesses amid instability
Interestingly, about 13.5% of family-owned firms employ over 500 people, indicating their significant contribution to job creation.
The financial performance of family-owned businesses is impressive. Over a period of five years, family-owned businesses recorded an average profit of $77.5 million — comfortably outranking non-family businesses that averaged at $66.3 million.
For those contemplating family business startups, several options abound. From pet services to guesthouses, meal delivery, online vintage shopping, and sustainable product creation, the opportunity range is broad. Modern opportunities also include web development, digital marketing, health and wellness coaching, all valuable in today’s digital and health-conscious age.
Other viable options include cleaning services and dropshipping enterprises. The former can be a reliable income stream with minimal initial costs, while the latter business model allows selling a variety of products without physical storage by outsourcing fulfilment.
In conclusion, family businesses can indeed be fruitful and profitable, demanding deep understanding, planning, creativity, and commitment. Effective communication within the family and transparency in management style are musts, as is the balancing act between capital growth, risk, and unity. Adapting to the changes of business trends and landscapes while preserving core values is vital for their continued success.
