According to the Small Business Administration, more than 70 percent of all family businesses do not survive through the second generation, and 8 percent do not make it to a third.
The quote highlights the alarming rate at which family-owned businesses fail to survive beyond the second generation. This phenomenon is often referred to as the 'family business succession crisis.' The statistics are stark, with over 70% of family businesses not making it to the third generation. This is a significant concern, as family businesses are often the backbone of local economies and communities.
The quote emphasizes the importance of effective succession planning and family business governance. It underscores the need for family business owners to develop a clear strategy for transferring ownership and control to the next generation. This requires careful planning, communication, and collaboration among family members.
The quote's statistics are based on data from the Small Business Administration, which has been tracking family business succession rates for decades. The trend is consistent across industries and geographic regions, suggesting that the issue is widespread and complex.
Kit Bond is a former United States Senator from Missouri, known for his advocacy on behalf of small businesses and entrepreneurs. As a senator, he worked to promote economic development and job creation through policies that support family-owned businesses.
The quote's statistics can be used to educate family business owners about the importance of succession planning and the need for proactive strategies to ensure the long-term survival of their businesses. This can be achieved through workshops, seminars, and online resources that provide guidance and support for family business owners.