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Feb 17Glen Katlein

Insights from PwC’s US Family Business Survey

Feb 17Glen Katlein
Light Bulb In The Dark

Recently, PWC released its 7th Family Business survey, the findings are as follows:

The US report captures the views of 154 owners, leaders and top executives of US family businesses and is one component of PwC’s global survey of 2,400 companies across over 40 countries.

 

This is PwC’s seventh Family Business Survey, which is conducted every two years, dating back to 2002.

A family business is defined as:

• the majority of votes are held by the person who established or acquired the company (or by their spouses, parents, child, or child’s direct heirs) and

• at least one representative of the family is involved in the management or administration of the business.

 

Background:

The US report captures the views of 154 owners, leaders and top executives of US family businesses and is one component of PwC’s global survey of 2,400 companies across over 40 countries.

 

This is PwC’s seventh Family Business Survey, which is conducted every two years, dating back to 2002.

A family business is defined as:

• the majority of votes are held by the person who established or acquired the company (or by their spouses, parents, child, or child’s direct heirs) and

• at least one representative of the family is involved in the management or administration of the business.

Key findings include:

US family businesses are cautiously optimistic about their growth prospects, more than two-thirds are expecting steady growth within the next five years, piggybacking the widespread growth family businesses saw in 2014. Key findings include:

• 79% of respondents are expecting steady growth in the next 5 years.

• 47% of respondents identify new technology as a substantial challenge.

• Many hope to address skills gap by making strategic hires, however 60% of family businesses predict it will be a challenge to find the right candidates.

• 73% indicated they do not have a documented succession plan in place for senior roles.

• Family business are experiencing ‘Sticky Baton Syndrome’, where the older generation is reluctant to hand over full control to the younger generation. 56% of family business owners predict they will stay involved longer than they’d like to ensure a smooth leadership transition.

• 64% of respondents plan to sell abroad, up from 30% five years ago.

 

photo credit: Light Bulb No. 1 via photopin (license)

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