Second annual survey examines attitudes and priorities of American family businesses across generations
ST. Louis, March 19, 2024–(BUSINESS WIRE)–Family-owned businesses have become increasingly optimistic about the strength of their organizations in the past year, according to a new survey from the First Bank Center for Family Owned Business. We found that they are focusing on recruiting and retaining employees. . The study also highlighted differences in the priorities of company founders and subsequent family leaders.
Overall confidence in the economy has risen significantly over the past 12 months, with 61% of respondents strongly agreeing they are “confident in the direction of the economy over the next 12 months,” an increase of 12% Did. Additionally, they are confident in the health of their business, with 75% of respondents strongly agreeing that “I expect our business and revenue to grow over the next five years,” and 1 year ago 11% increase compared to 68% strongly agree. They agreed that “our current business model can withstand continued uncertainty,” with an annual increase of 7%.
The U.S. economy is primarily made up of family-owned or controlled businesses, which account for 87% of total U.S. businesses. They account for more than 82 million jobs, or 62% of the nation's workforce, and account for 64% of the U.S. gross domestic product (GDP), totaling $5.9 trillion.1.
“Family-owned businesses drive our communities, and this study recognizes their enduring strength, resilience, and everyday innovation,” said Michael Dierberg, Chairman of the First Bank Board of Directors. “It highlights the spirit.” “The 2024 Family Business Survey focuses on identifying different priorities between generations in areas such as measuring success, the role of branding, and the importance of philanthropy as part of culture, We are examining the changing dynamics of matters and strategies.”
Family business owners focus on employee recruitment and retention. 38% of respondents indicated that hiring more employees is a business' top priority, up 18 points from 2023, and employee engagement and satisfaction has increased by 12%, up from 23% in 2023. The points increased to 35%.
The study also measured differences in leaders' priorities by position in the family structure. The main contents are as follows.
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Profitability is the highest success indicator, accounting for 55% of all generations. However, founders (G1) are more focused on this than second-generation (G2) and third-generation and above (G3+) leaders (G1:65%, G2:50%, G3+:43% ). “Family cohesion and cohesion” (G1:28%, G2:35%, G3+:30%) and “continuous succession” (G1:21%, G2:35%, G3+:30%) It is a more important success indicator for generations. -Generational leaders rather than founders.
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Respondents identified the skills the next generation of leaders need for continued success. 'People management' was highlighted as most important (G1: 58%, G2: 55%, G3+: 58%), with 'passion for business' a close second. There was greater variation between generations in this attribute (G1:64%, G2:49%, G3+:46%).
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70% of companies incorporate family business into their branding, with the most common approach being 'telling your backstory' (59%). Not surprisingly, the importance of emphasizing family brands increases with each generation (G1:57%, G2:77%, G3+:88%).
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Overall, third-generation leaders are the most involved in philanthropy and community support efforts, followed by second-generation leaders. Founders have the lowest engagement, with 26% indicating they are not involved in the community.
First Bank established the Family Business Center to leverage its experience as a fourth-generation family-owned business to help other families build long-term, multi-generational business success. This research provides insight into the challenges, opportunities, and trends shaping the family business landscape.
“Family-owned businesses face unique opportunities and challenges as they embark on a multigenerational journey,” said Ed Hart, senior vice president and director at FirstBank. “It provides a snapshot of the current situation and guidance for long-term success.” Family run business center. “It is exciting to help these businesses evolve and thrive by balancing tradition and innovation, so that all family businesses can continue for generations to come. It will be.”
The 2024 Family Business Survey surveys people of all generations, industries, and geographies to gain insights on topics such as business goals and strategies, the definition of “success,” branding, next-generation leadership, philanthropy, and economic development prospects. Sent to Family Business. The survey was conducted in partnership with market research firm MacKenzie Corporation and surveyed a total of 575 respondents.
Complete survey results are available upon request or can be accessed through the FirstBank Family Business Center website.
Daiichi Bank Family Business Center
The FirstBank Center for Family-Owned Businesses was established in 2021 to expand focus and resources on family-owned businesses. The center is led by Executive Director Joe Ambrose and Director Ed Hart. They are a family run business and he has over 60 years of experience. The center offers customized resources, online tools, webinars, and educational opportunities for family businesses of all sizes to meet the unique needs of family business members. To access online resources, please visit www.first.bank/Business/Plan/Center-for-Family-Owned-Businesses. For more information, please contact CFOB@fbol.com.
About Daiichi Bank
First Bank, a subsidiary of FB Corporation, is one of the nation's leading privately owned banks. As a family-run business with four generations of independent single-family owners, First Bank provides long-term planning, stability and experience to help businesses and the communities in which they operate grow and thrive. With $6.6 billion in assets and 80 locations throughout California, Missouri and Illinois, First Bank provides comprehensive solutions to customers in commercial and consumer banking, wealth management and mortgage banking. We developed a relationship-driven approach. For more information, please visit www.first.bank.
1 2021 Survey by FamilyBusiness.org
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