This article page is designed to display Selected Information as it relates to Closely Held, or Family Businesses. Your comments would be most appreciated:
Worker survey:
Source: Conference Board, Feb 28, 2005 http://www.conference-board.org/utilities/pressDetail.cfm?press_ID=2582
- 40% of workers feel disconnected from their employers.
- 14% are very satisfied with their job
- Two out of every three workers do not identify with or feel motivated to drive their employer's business goals and objectives.
- 25% of employees are just “showing up to collect a paycheck.”
- Educational and job training programs did not fare well either. Only 30% of workers claimed to be satisfied with these types of company programs.
Forbes Magazine, for the May 1, 2000 issue (on page 113), asked the Census Bureau for Data on Household Income by Age Group. The Numbers Below reflect the data by Age:
Age Range | 90th % | 95th % | 99th % |
15-24 | $57,000 | $72,300 | $131,900 |
25-29 | 78,000 | 96,500 | 155,300 |
30-34 | 90,800 | 114,100 | 201,000 |
35-39 | 102,200 | 132,900 | 263,300 |
40-44 | 109,600 | 145,000 | 275,700 |
45-49 | 116,700 | 147,500 | 269,800 |
50-54 | 130,100 | 168,400 | 312,900 |
55-59 | 122,000 | 162,200 | 324,700 |
60-64 | 100,100 | 131,600 | 269,300 |
65-69 | 85,200 | 120,200 | 221,600 |
70-74 | 68,000 | 93,600 | 174,900 |
75 and over | 54,300 | 76,300 | 161,000 |
Overall Average | 100,100 | 130,100 | 238,900 |
It should be noted that the AVG for 50th % was $38,000! Our intention for this Table is to help illustrate to Youthful Employees that the most money they will report to the IRS will occur in their Mid 50's, and that it is important for them to develop their skills and experiences to maximize their opportunities for that period.
American Advertising Federation asked Senior Execs to Rank Marketing Tactics in order of importance:
Source: Business Week 7/26/99 p54
- 29.4% Product Development
- 26.8% Strategic Planning
- 15.5% Public Relations
- 14.0% Research & Development
- 13.6% Financial Strategies
- 10.3% Advertising
- 3.4% Legal
US Trust Surveyed Affluent Americans and determined the following:
Source: Hartford Business Journal, 7/19/99 p14
1. How to become financially successful in the 20th century:
- 49% Start Your Own Business
- 20% Professional - Law/Medicine
- 14% Work for Large Corporation
- 13% Join a Small Company
- 4% Don't Know
2. Traits required for financial success in the 20th century (% citing as very important)
- 91% Ambition
- 89% Hard Work
- 88% Technological Savvy
- 85% Intelligence
- 84% Advanced Degree
- 83% Communication Skills
- 71% Entrepreneural
- 69% Flexibility
- 61% Financial Skills
- 55% Management Skills
- 49% Foreign Language Skills
- 49% A Charming Personality
- 45% International Experience
- 24% Well-To-Do Family
The greatest part of America's wealth lies with privately-held, family-owned businesses.
Over 90% of all business enterprises in North America and the majority of businesses internationally are privately held, or family-owned.
Nearly 35% of Fortune 500 companies are family firms.
Family businesses account for 78% of all new job creation, 60% of the nation's employment, and 50% of the GDP.
More than 30% of all family owned businesses survive into the second generation. 12% will still be viable into the third generation, with 3% of all family businesses operating at fourth generation level and beyond.
Succession planning is a growing issue 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 five years, 39% of family-owned firms will experience a change in leadership due to retirement or semi-retirement.
According to a recent national survey, 25% of senior generation family business shareholders have not completed any estate planning other than writing a will; 81% want the business to stay in the family; and 20% are not confident of the next generation's commitment to their business.
By the year 2005, virtually all closely-held and family-owned businesses will lose their primary owner to death or retirement.
The cumulative effect of these landmark "succession events" will be the largest intergenerational transfer of wealth in U.S. history. Cornell economist Robert Avery estimates that approximately $10.4 trillion of net worth will be transferred by the year 2040, with $4.8 trillion being in the next 20 years.