There’s
no business like family business. The greatest part of America’s
wealth lies with family-owned businesses, according to the Family
Firm Institute. More than 90 percent of all business enterprises
in North America and the majority of businesses internationally
are family-owned. Nearly 35 percent of Fortune 500 companies
are family firms. And family businesses account for 78 percent
of all new job creation, 60 percent of the nation’s employment
and 50 percent of the GDP.
The central issue for family businesses is succession planning.
The great majority of owners (81 percent) want the business
to stay in the family. But only sometimes do those wishes come
true. More than 30 percent of all family-owned businesses survive
into the second generation; 12 percent will still be viable
into the third generation, with only 3 percent of all family
businesses operating at fourth generation levels and beyond.
In this month’s cover story, St. Louis Commerce Magazine selected
four of the region’s family businesses: Rolwes Homes, Wehrenberg
Inc., John Fabick Tractor Company and Hager Hinge, to see how
they have handled the succession issue. While each has handled
the challenge differently, they all have successfully managed
to keep the businesses in the family for two, three, four and
five generations respectively.
Even for businesses that aren’t family businesses, family is
often influential as noted in the profile on page 84 featuring
Anthony Thompson, president & CEO of Kwame Building Group, Inc.,
a construction management firm. Thompson’s parents taught him
the importance of family, education, good work ethics, responsibility
to others and knowing the value of money. From that, Thompson
has founded a very successful company, one that creates opportunities
for its 65 employees—most of whom are minorities.
Successful businesses treat both employees and clients well.
In an article entitled, Now That’s Business Entertainment, the
writer queries some of the region’s top businesspeople as to
how they show clients their appreciation for their business.
Area executives reveal their favorite ways to wine, dine and
generally entertain clients. One of the most popular answers
was to take clients to sporting events—even more so with the
Rams looking to repeat last year’s success and the Blues already
off on a good note.
Richard C.D. Fleming
President and Chief Executive Officer
St. Louis Regional Chamber and Growth Association
