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2013 Survey of Family Businesses
2013 Survey of Family Businesses
2013 Survey of Family Businesses
FAMILY BUSINESSES
350 Church St., Hartford, CT 06103-1126 | 860.244.1900 | cbia.com
2013 SURVEY OF
FAMILY
BUSINESSES
Introduction
Governance
Leadership
Banking strategies
Succession planning
Compensation strategies
CONTENTS
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . 2
Key Findings . . . . . . . . . . . . . . . . . . . . . . . . 3
Outlook for 201314:
Modest Improvement Expected . . . . . . . . . 4
Business/Economic Climate . . . . . . . . . . . . 4
Workforce . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Governance . . . . . . . . . . . . . . . . . . . . . . . . . 6
first-generation businesses.
Key Findings
8%
11%
27%
18%
23%
EXTERNAL
24%
12%
41%
14%
21%
Workforce issues
Employee training
Competition
Cost controls
Other
Other
add jobs.
Healthcare
Overall economy
Family businesses also plan to make significant investments, greater than a typical year, in equipment (63% of respondents), IT (41%), facilities (35%), employee recruitment
and retention (35%), and training (25%).
NO
90%
IS CONNECTICUT
FRIENDLY TO
YOUR BUSINESS?
Business/Economic
Climate
In an open-ended question, we
asked family businesses to identify
Indeed, 90% report that Connecticut is not a businessfriendly state. The three single biggest concerns weighing
on family business owners in terms of growth are a slow
economy (25%), overall business costs (23%), and difficulty
finding employees (13%).
The CBIA/BlumShapiro 2013 Survey of Connecticut Businesses, also conducted this summer, found that a large percentage of business leaders surveyed have a negative view
of Connecticut as a place to do business and that controlling state government spending is their top recommendation
for improving the business climate. Family business owners
were, of course, widely represented in that survey.
These earlier findings, together with the sentiment
expressed in our current survey of family businesses, point
to a problem of confidence in state policymaking that can
negatively impact decisions about hiring and investment.
Workforce
take over the business are also key challenges (more than
businesses surveyed.
1%
1%
6%
7%
10%
11%
15%
18%
16%
15%
Governance
Most businesses surveyed describe their company culture
as informal/having limited structure (51%) or very informal
(7%). Only 6% claim a highly structured environment with
formal policies and procedures.
Leadership, managerial,
coaching skills
41%
35%
13%
Strategic planning
Project management skills
8%
1%
12%
24%
63%
HOW MANY
GENERATIONS
ARE CURRENTLY
INVOLVED IN
YOUR FAMILY
BUSINESS?
One
Three
Two
Four
are:
Parents/children (68% of companies)
Siblings (44%)
Spouses (38%)
Cousins/aunts/uncles (23%)
In-laws (9%)
decades or longer.
negative exposure
for family businesses,
and they shed light
on areas where better
education and clearly
defined plans and
policies are needed.
With 72% of family
businesses into their
second generation
or beyond, there
3%
FAMILY
20 yrs.
23%
NONFAMILY
10 yrs.
TENURE: FAMILY
VS. NONFAMILY
33%
BALANCING THE
NEEDS OF YOUR
BUSINESS WITH
THE NEEDS OF
YOUR FAMILY
Yes, they are well balanced
42%
36%
Ensure business
health before transition
24%
Develop a proper
succession plan
Everything is ready
Percentage of
respondents that intend
to pass on their business
to the next generation
16%
7%
PASS ON
58%
17%
40%
20%
23%
years.
determined a plan.
Advice,
Guidance, and
Best Practices
2013
41%
Experienced family
2012
41%
2011
8%
2010
8%
single- or multiple-family
offices (SFO, MFO) to
2009
2%
YES
31%
guide decision-making,
family businesses.
business-friendly state.
Conclusion
10
ABOUT THE
SURVEY
TRANSPORTATION,
COMMUNICATIONS,
ELECTRIC, GAS, AND
SANITARY SERVICES (1%)
FINANCE,
INSURANCE,
AND REAL
ESTATE (4%)
Methodology
WHOLESALE
TRADE
11%
6%
RETAIL TRADE
AGRICULTURE,
FORESTRY,
AND FISHING
(1%)
11%
40%
CONSTRUCTION
MANUFACTURING
Demographics
Industries represented in the survey:
Manufacturing (40%)
Services (15%)
Other (12%)
Construction (11%)
Retail Trade (11%)
Wholesale trade (6%)
12%
OTHER
15%
SERVICES
Agriculture, forestry,
and fishing (1%)
11
recognizes that
family-owned
in the business
12
SORS
CohnReznick is proud of its sustained success in working
coverage.
Visit cohnreznick.com.
Group, through
13
ABOUT THE
SPONSORS
companies and other business organizations; business suc-
and Riege understands its clients and their needs and pro-
14
Visit rrlawpc.com.
ABOUT CBIA
Connecticut Business &
Industry Association
CBIA is Connecticuts leading business organization, with
10,000 member companies. Our public policy staff works
with state government to help shape specific laws and
regulations to support job creation and make Connecticuts
business climate competitive. Our councils, committees,
and roundtables give our members forums in which to
influence the legislative and regulatory processes.
One of CBIAs most important functions is to provide our
members with information to help them better manage
their businesses. We conduct training seminars and
workshops; arrange for consulting services; and hold
conferences on environmental regulations, health and
safety, human resources, compensation and benefits,
taxes, energy, economic conditions, and healthcare.
Our free telephone consulting service gives members
access to our experienced staff of professionals on
a wide range of business topics.
Many CBIA members take advantage of our employee
benefits plans, discount programs, and group purchasing
opportunities. These include innovative health and dental
insurance programs through CBIA Health Connections
CBIAs private-sector health insurance exchangeas
15
16
2013 SURVEY OF
FAMILY BUSINESSES
350 Church St., Hartford, CT 06103-1126 | 860.244.1900 | cbia.com