In the United States, families own about 85 percent of all businesses. However, less than 30 percent of these companies last more than 20 years. The companies fail, and the owners can’t pass down the family businesses to their sons and daughters. Why is it so difficult for family businesses to survive?
One reason may be changing times. Fifty years ago, many families owns local grocery stores. But today, small family owned stores cannot complete with large supermarket chains. Today, most Mom and Pop stores are a thing of the past. The way of life is another challenge in a family business. A successful company requires hard work and long hours. Younger generations may not want this lifestyle. They may want more freedom. In addition, sons and daughters may not have the same enthusiasm for the business as their parents.