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Family is Big Business The greatest part of U.S. wealth lies with family-owned businesses

Abundance Child

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So called Blacks have collectively invested 1.3 Trillion dollars supporting families other than their own. Family owned businesses are economic powerhouses that drive local, national, and global economies.

Family is am model for government and government is fueled by big business. “Confucius believed the child should be subordinate to the parent, younger brother to the older, wife to husband, and subject to the sovereign who is to be regarded as the father of the nation. The state as the family writ large was the most harmonious, orderly, and natural form of government.” -Wikipedia

Louis de Bonald wrote as if the family were a miniature state. In his analysis of the family relationships of father, mother and child, De Bonald related these to the functions of a state: the father is the power, the mother is the minister and the child as subject. As the father is “active and strong” and the child is “passive or weak”, the mother is the “median term between the two extremes of this continuous proportion”. De Bonald justified his analysis by quoting and interpreting passages from the Bible:

“[It] calls man the reason, the head, the power of woman: Vir caput est mulieris {man is head of woman} says St Paul. It calls woman the helper or minister of man: ‘Let us make man,’ says Genesis, ‘a helper similar to him.’ It calls the child a subject, since it tells it, in a thousand places, to obey its parents”. (On Divorcepp 44–46)

De Bonald also sees divorce as the first stage of disorder in the state (the principle of  macrocosm/ microcosm). He insists that the deconstitution of the family brings about the deconstitution of state…

-Wikipedia

Family is big business and a natural approach to nationalization. The same emotional bind that ties together participants of family/ governments is undeniably the same tie that will tie multiple families together who can participate in nation building.

Here are some statistics.

The U.S. Economic Engine is Family Business

  • Family businesses account for 64 percent of U.S. gross domestic product, generate 62 percent of the country’s employment, and account for 78 percent of all new job creation.
  • Family-owned businesses are the backbone of the U.S. economy. Studies have shown about 35 percent of Fortune 500 companies are family-controlled and represent the full spectrum of American companies from small business to major corporations.
  • The greatest part of U.S. wealth lies with family-owned businesses. Family firms comprise 80 to 90 percent of all business enterprises in North America.3
  • Small businesses, including many family firms, employ just over half of US workers.
  • Research shows that family businesses are less likely to lay off employees regardless of financial performance.

Family Businesses Have Longevity

  • What truly drives many family businesses is the sense of connection and identity the owners and their family members feel with the business mean age of family control in the family’s core company is 60.2 years.
  • More than 30% of all family-owned businesses survive into the second generation. Twelve percent will still be viable into the third generation, with 3% of all family businesses operating at the fourth-generation level and beyond.
  • The tenure of leadership in a Family Enterprise is four to five times longer than their counterparts.
  • Of primary importance among family firm wealth holders is transferring not only their financial wealth but also their values surrounding their wealth to subsequent generations. Primary values taught include encouraging children to earn their own money, philanthropy, charitable giving and volunteering.
  • The environment for innovation in family businesses improves when more generations of the owning family are actively involved in the business.
  • Family businesses retain talent better than their competitors do: only 9 percent of family businesses work forces turned over annually (versus 11 percent at non-family firms), in a Harvard Business Review study. They create a culture of commitment and purpose, avoiding layoffs during downturns, promoting from within and investing in people.

 

Delaware family has longevity. Meet Maxine L’Abbee, Ananatawa El, Abundance Child and Meara Bey. The environment for innovation in family businesses improves when more generations of the owning family are actively involved in the business. 

Family Businesses Create Wealth

  • Family-owned businesses have strong entrepreneurial activity across time.
  • The largest family-owned business in the US is Wal-Mart Inc., with $499.4. billion in net sales and 2.2 million employees worldwide in 2016.
  • 222 owners and executives of mostly mid-sized, family-owned businesses were surveyed. Approximately 70% of the respondents represented companies with revenues of $200 million or more, while 25% were with companies generating revenues of $500 million or more.
  • In the S&P 500 companies, ROI is greater in family businesses, with a 6.65 percent greater return than non-family firms.

Family Businesses Know How to do Business Right

 

  • Family-owned businesses practice good governance. A Harvard Business Review study showed 94 percent of surveyed family firms were controlled by supervisory or advisory boards. Family representation on these boards averaged 31 percent, demonstrating a clear separation between family and business in most cases businesses leaders focus on the next generation, not the next quarter. They tend to embrace strategies that put customers and employees first and emphasize social responsibility.
  • Family businesses develop leaders in unlikely places – more than 40 percent of companies in the Harvard Business review study included members of the next generation on their boards and committees in order to nurture their business and management skills.
  • Family businesses have powerful internal cultures. A study of 114 family firms and 1,200 other large companies for their organizational health found that family-owned businesses scores significantly higher on things like worker motivation and leadership.

Women Matter in Family Business

  • Women are increasingly participating in family businesses leadership. Currently, 24 % of family businesses are led by a female CEO or President, and 31.3 % of family businesses surveyed indicate that the next successor is a female. Nearly 60 percent of all family-owned businesses have women in top management team positions.
  • Over the past five years, woman-owned family businesses have increased by 37%.
  • Female-owned family firms are typically 10 years younger than male-owned firms and more are first-generation businesses.
  • Female-owned family firms experience greater family loyalty to the business, agreement with its goals, and pride in the business.
  • Woman-owned family firms have a 40% lower rate of family member attrition in the business.

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