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It's Just Not the Family Way
A nationwide survey asked family-owned companies to rate the importance of various sources of financing.
How do family businesses think about financing their growth? How jealously do they guard their equity? A nationwide survey of family companies by Massachusetts Mutual Life Insurance shows that nearly 90% would consider almost anything, including depleting personal savings and selling assets, before selling stock publicly or privately. Some 90% of the 644 respondents had revenues of $25 million or less.
How would you rate the following sources of financing for your family business?
Percentage of respondents
| Critical | Very important | |
| Cash flow | 21% | 63% |
| Bank funds | 15 | 47 |
| Family funds | 10 | 27 |
| Project financing | 7 | 19 |
| Sale of assets | 3 | 17 |
| Private placements | 3 | 11 |
| Public securities | 1 | 7 |
| Joint-venture sources | 1 | 7 |
Source: MassMutual, Springfield, Mass., September 1993.
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