Not sure if these numbers are accurate, but the link suggests that “family owned businesses” account for more than 60% of jobs nationally, and nearly 80% of new job growth.
Yet…strangely…only 30% of such businesses survive to the second generation, 13% to the third, and 3% to the fourth.
Take Maker’s Mark Bourbon, which I believe is now on its third generation. If it makes it to the fourth, it’ll be a rare breed.
Any thoughts as to why?
Part of the issue is the younger generations probably don’t have much interest in doing what their parents did for the next 25-30 years. The other part is someone comes along and finds a better way to do it more efficiently and at a cheaper cost.
I have a buddy who just started up an AI business that caters to small family owned businesses in helping drive efficiency and generating more leads. He was telling me about how many opportunities are out there but having issues getting a proof of concept going with a roofing company.
One of the long standing pool installation companies in his community is still doing invoicing on paper and door knob flyers. Sheesh.
What counts as family owned business? Walmart?
How would a publicly traded company be family owned?
I guess if the family has major board seats and voting power?
Like Waystar Royco
If you don’t mind me asking, how exactly does his business work?
I’ve heard about so many people that are starting or started "“AI Companies” to assist in various industries.
I still don’t understand what this really means. Is he just selling AI products as a broker?
Not sure, but here’s the thing.
Wouldn’t the Purdue law firm count as a “family business?”
Isn’t it now in its second generation?
Just sayin’!
Again, not sure what the definition is, but as far as I can tell, THIS would be the LARGEST “family owned business” in America.
The Cargill-MacMillan families are its owners, and they’ve been in business since 1865.
Truly a MULTI-GENERATIONAL success story!
Over 160K employees, over 165 billion in revenues, and control about 25% of our nation’s grain exports.
As for Walmart, no.
It’s PUBLICLY TRADED, not family owned.
You can buy its stock from any broker, traded under “WMT” on the NYSE.
The Samuel’s sold Maker’s Mark to Beam in 2011 but they do still run the distillery.
I took part in a barrel pick there a couple months ago.
Ah, that’s right. I forgot about that.
Bill Samuels Jr. was a Sigma Nu (as was I, albeit many years later) at the same undergrad college that I attended.
So I guess that one didn’t make it to generation three then, right?
They sold the same year the 3rd generation took over the operation. Not sure which occurred first but my guess is that Bill Samuels Jr. oversaw the sell before handing over the keys to the building to his son.
Interesting!
So in Houston, what would be some of the bigger multi-generational “family businesses?”
From ChatGPT:
Prominent U.S. Private, Multi-Generational Family Businesses
Cargill, Inc.
• Founded: 1865 (by William W. Cargill)
• Industry: Agribusiness, commodities, food ingredients, financial services
• Ownership: Approximately 88% owned by the Cargill–MacMillan family for over five generations  
• Size: Largest privately held company in the U.S.; 2022 revenue around $165 billion; ~160,000 employees 
Koch Industries (Private, Family-Controlled)
• Founded: 1940
• Industry: Energy, chemicals, manufacturing, myriad others
• Ownership: Still under Koch family control; long-term leadership and private governance 
• Scale: Generates over $120 billion annually  
Mars, Incorporated
• Founded: 1911
• Industry: Confectionery, pet care, food products
• Ownership: Fully family-owned across generations 
• Scale: ~$47 billion in annual revenue 
Stine Seed Company
• Founded: 1950s (as a family-run farm)
• Industry: Seed genetics (soybean, corn)
• Ownership: Owned by Harry Stine and his four children; actively involved in the business 
• Size: World’s largest private seed company; over $1 billion in sales and nearly $3 billion valuation (2014 estimate) 
Heaven Hill Distilleries, Inc.
• Founded: 1935
• Industry: Bourbon and spirits
• Ownership: Family-owned and operated by the Shapira family 
• Scale: Second-largest bourbon whiskey inventory holder globally; seventh-largest U.S. alcohol supplier and largest independent family-run distillery in the country 
The Biltmore Company
• Founded: 1933
• Industry: Hospitality, estates, brand licensing
• Ownership: Vanderbilt family descendants (Cecil line) still lead the company; currently helmed by Bill Cecil Jr. 
• Scale: Manages Biltmore Estate, lodging, brands, wine operations; ~2,400 employees; ~$207 million in revenue (2016 data) 
84 Lumber
• Founded: Late 1950s (by Joseph Hardy III)
• Industry: Building materials supply
• Ownership: Family-run—Joseph passed leadership to his daughter Maggie Hardy 
• Scale: Nation’s largest privately owned building materials supplier with 250+ stores 
Publix Super Markets (Jenkins Family)
• Founded: 1930s–1940s (George W. Jenkins)
• Industry: Supermarket retail
• Ownership: Employees own ~80%; the Jenkins family retains ~20% and remains influential 
• Scale: Nearly 1,400 stores across eight states; $54.5 billion in retail sales (2022) 
Prominent Houston Private, Multi-Generational Family Businesses
Thanks, but gee.
What about GALLERY FURNITURE???
It’s still in the founding generation. That’s why ChatGPT didn’t include it.
Ah, got it!
It will assess a business process and find opportunities for better efficiency and cost savings. The other thing it does is what cookies already do but with a bit more targeted approach to end user’s feeds.
I don’t see how that’s AI but I probably don’t know all the details
I know that there are companies out there trying to make a quick buck by claiming to use “AI” to broker other services or improve efficiency
AI is a buzzword right now, and there are lots of businesses who have no idea what it AI really is but are being scammed by companies using it as a buzzword to sell products or services (the product or service itself isn’t AI)
Plugging in a business process/model into copilot/ChatGPT and it spitting out ideas to make the process more efficient is AI
Yeah but it doesn’t take an entire company to do that
You’re essentially selling ChatGPT services for a commission (which I’m not even sure how this is legal)
But the business could just go to ChatGPT themselves instead of paying someone else to do it
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