Why FOBs are so important
Obviously you know why your business is important to you, but let's take a quick look at why family-owned businesses are vitally important for the United States as whole.
64% of the
US GDP
Contributing significantly to national output, they play a major role in economic productivity.
62% of US employment
Employing a majority of workers, they are critical to maintaining the country’s labor market.
78% of US
job creation
Generating most new positions, they are essential for driving workforce expansion and job growth.
27.3% of all
US businesses
Representing a significant portion of all enterprises, they hold a vital place in the business landscape.
Why proper planning for succession is so important for FOBs
Now let’s look at FOBs and their often challenging multi-generational lifespans. Understanding these dynamics is crucial for recognizing the unique hurdles your business faces as it strives for longevity.
85% have zero succession plans
Most lack formal plans for leadership transitions, leaving future ownership uncertain.
30% survival
rate
Only a third successfully transfer control from the founding generation to the next.
12% survival
rate
Very few make it beyond the second generation, with survival rates dropping dramatically.
15 year
life span
On average, they operate for 1 generation before facing closure.