Challenges for small and family owned businesses
Next week is National Small Business Week- April 29-May 5, 2018. The Small Business Administration’s Office of Advocacy defines a small business as an independent business having fewer than 500 employees.
Small businesses make up:
- 7 percent of U.S. employer firms,
- 64 percent of net new private-sector jobs,
- 2 percent of private-sector employment,
- 9 percent of private-sector payroll,
- 46 percent of private-sector output,
- 43 percent of high-tech employment,
- 98 percent of firms exporting goods, and 33 percent of exporting value.
Source: U.S. Census Bureau, SUSB, CPS; International Trade Administration; Bureau of Labor Statistics, BED; Advocacy-funded research, Small Business GDP: Update 2002- 2010.
Family Owned Business:
Of the 28.8 million small businesses in America, 19% are owned by families. “Family-owned” means “any business in which two or more family members operate the company, and the majority of ownership or control lies within a family.” Challenges family businesses face:
- 30% of family businesses survive the transition from first to second generation ownership.
- 12% survive the transition from second to third generation.
- Only 13 percent of family businesses remain in the family over 60 years.
- And 47% of family business owners expecting to retire in five years DO NOT have a successor.
Source: SCORE Association | 1175 Herndon Parkway | Herndon, VA 20170
The SBA is a font of information for small businesses and family owned businesses. Many articles and news stories are published daily on the struggles these businesses face in our competitive and technology driven economy. As a small business, Expex understands these challenges and has created our web app to help these small and family owned businesses. If at all possible, we purchase from small and family owned businesses and support them in our local community.
Next time you make a purchase whether it is a slice of pizza or a piece of business equipment, please include small businesses in your competitive analysis. Our economy will thank you!
