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The
greatest part of America's wealth lies with family-owned businesses.
Over
80% of all business enterprises in North America and the majority
internationally are family-owned
Succession
planning is a growing problem for family businesses due to demographics.
Post-World War II entrepreneurs, who created the world's greatest
wealth, are now reaching the age when they must decide how to
pass on the wealth secured primarily in their family businesses.
In
the next few years, about 40% of family-owned firms will experience
a change in leadership due to retirement or semi-retirement.
Twenty-five
percent of senior generation family business shareholders have
not completed any estate planning other than writing a will;
about 80% want the business to stay in he family; and about 20%
are not confident of the next generation's commitment to their
business.
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The
cumulative effect of these landmark "succession events" will
be the largest inter- generational transfer of wealth in U S.
history.
Nearly
70% of all family firms fail before reaching the second generation
and 80% fail before the third generation. Only a little over
3% of all family businesses operate at fourth generation level
and beyond.
Family
businesses account for 78% of all new job creation, 60% of the
nation's employment, and 50% of the GDP.
To
cope with various issues and challenges, many family business
owners are turning to family business forums, a form of continuing
education workshop/programs designed for their needs. Currently,
there are more than 100 independent family business forums nationwide.
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