Benchmark: Family Businesses on the Go
BY Donna Fenn
Some data comparing some traits of high-growth family owned businesses to low-growth family owned companies.
Approximately 40% of 4,000 recently surveyed family businesses characterized themselves as "high growth," reporting 10% or greater average annual sales-volume increases over the past five years. In comparison with their lower-growth counterparts (reporting 5% or less growth), these companies were more likely to have the following traits:
High-growth Low-growth companies companies
Have three or more board of directors' meetings annually 33% 25%
Report international sales 37% 26%
Operate with a strategic plan 56% 44%
Believe information technology is important to achieving goals 73% 60%
Source: "American Family Business Survey, 1995," conducted by Family Enterprise Center at Kennesaw State College; Loyola University Chicago Family Business Center; and the Arthur Andersen Center for Family Business, in Houston.