According to Westfair Communications correspondent Peter Katz, “family-owned businesses form the foundation of the U.S. economy.” Statistically this means that around 64 percent of America’s GDP comes from these businesses with 36 percent of all employees working in the family businesses. In addition, for the economy, 40 to 46 percent of all annual sales come from family-owned businesses.
But how successful are these family-run businesses? According to recent data from the Cambridge Family Enterprise Group, only 16 percent of businesses are successfully transmitted from a founder to the next generation. The numbers continue to diminish through each generation, reaching a mere 2 percent by the fourth generation.
But there is some good news for New Yorkers, as was seen at the 2017 award ceremony for Westchester and Fairfield counties’ family businesses. According to Dee DelBello, Westfair Communications Publisher, these counties comprise “the most diverse, successful and community-minded family businesses…Family-owned businesses are the backbone of our country and its economy, and that’s just as true for Westchester and Fairfield counties.”
One of the award winners was Mamaroneck’s Walter’s Hot Dog Stand. Recipient Christine Warrington accepted the award together with her children. She is a third generation family member to run the company which was launched in 1919 by her grandparents. Today, her three children aged 39, 31 and 27 are all working to “continue the legacy of Walter’s.”
if so much of America’s economy is dependent on family-run businesses, wouldn’t it make sense for more people to at least give it a try?