Family-owned businesses of all sizes help drive the U.S. economy, whether they’re mom-and-pop shops or Fortune 500 companies. They’re economic players in cities and states across the country, especially those west of the Mississippi. LendingTree researchers found that West Coast cities and western states dominate our list of the places with the most family-owned businesses.
To qualify as a family-owned business, two or more people from one family must have a majority stake in the business. Across the 50 metro areas that were analyzed, family-owned businesses represent about 29% of all firms.
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Tips for running a successful family business
Merging family and business could lead to complex challenges and relationships among relatives. But with the right approach, you could make sure your family business endures through many generations. Here are a few tips to follow when running a family-owned business.
1. Set boundaries.
Consider keeping personal matters separate from work. Setting boundaries and ground rules could help you avoid discussing work at all hours, even at home. Maintaining this separation would also keep non-family employees from feeling left out of conversations.
2. Seek outside perspectives.
In addition to working with family members, considering hiring non-family help when it best suits the business. Lawyers or business consultants can be valuable third parties when it comes to creating business plans or drawing up documents.
3. Plan for the future.
Succession planning would be crucial if you expect to one day retire or leave the company. Determine who would be taking control of the family business when you step away, whether that be another family member or an outside party. You should also decide how the business would be valued and under what circumstances any shareholders may leave.
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Methodology
To find the places and industries with the most family-owned businesses, LendingTree researchers analyzed 2016 data from the Census Bureau Survey of Entrepreneurs. Specifically, researchers compared the number of reported firms to the number of firms that reported being family owned. Family ownership is defined as two or more people from one family having a majority of ownership of the business.
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50. Buffalo, New York
Family-owned firms: 2,418
Total reporting firms: 13,053
Family-owned rate: 18.5%
Image Credit: iStock/Jacek_Sopotnicki.
49. New York
Family-owned firms: 54,450
Total reporting firms: 252,215
Family-owned rate: 21.6%
Image Credit: iStock/Chaay_Tee.
48. Boston
Family-owned firms: 12,068
Total reporting firms: 51,880
Family-owned rate: 23.3%
Image Credit: iStock/DArthurBrown.
47. Hartford, Connecticut
Family-owned firms: 2,891
Total reporting firms: 12,371
Family-owned rate: 23.4%
Image Credit: iStock/Sean Pavone.
46. Philadelphia
Family-owned firms: 14,849
Total reporting firms: 62,748
Family-owned rate: 23.7%
Image Credit: iStock/vichie81.
45. Washington, D.C.
Family-owned firms: 15,174
Total reporting firms: 63,849
Family-owned rate: 23.8%
Image Credit: iStock/rarrarorro.
44. Chicago
Family-owned firms: 27,757
Total reporting firms: 116,534
Family-owned rate: 23.8%
Image Credit: iStock/Sean Pavone.
43. Atlanta
Family-owned firms: 14,656
Total reporting firms: 61,308
Family-owned rate: 23.9%
Image Credit: iStock/lavin photography.
42. Richmond, Virginia
Family-owned firms: 3,423
Total reporting firms: 14,258
Family-owned rate: 24.0%
Image Credit: iStock/Sean Pavone.
41. Detroit
Family-owned firms: 11,375
Total reporting firms: 47,135
Family-owned rate: 24.1%
Image Credit: iStock/f11photo.
40. Miami
Family-owned firms: 20,428
Total reporting firms: 84,286
Family-owned rate: 24.2%
Image Credit: iStock/Demetrius Theune.
39. Cleveland
Family-owned firms: 6,010
Total reporting firms: 23,487
Family-owned rate: 25.6%
Image Credit: iStock/Sean Pavone.
38. Baltimore
Family-owned firms: 7,789
Total reporting firms: 30,175
Family-owned rate: 25.8%
Image Credit: iStock/Sean Pavone.
37. Minneapolis
Family-owned firms: 11,989
Total reporting firms: 45,869
Family-owned rate: 26.1%
Image Credit: iStock/RudyBalasko.
36. Raleigh, North Carolina
Family-owned firms: 4,071
Total reporting firms: 15,313
Family-owned rate: 26.6%
Image Credit: iStock/Kruck20.
35. Denver
Family-owned firms: 10,869
Total reporting firms: 40,634
Family-owned rate: 26.7%
Image Credit: iStock/Sean Pavone.
34. Birmingham, Alabama
Family-owned firms: 2,807
Total reporting firms: 10,438
Family-owned rate: 26.9%
Image Credit: iStock/SeanPavonePhoto.
33. Virginia Beach, Virginia
Family-owned firms: 4,652
Total reporting firms: 17,225
Family-owned rate: 27.0%
Image Credit: iStock/ABEMOS.
32. Pittsburgh
Family-owned firms: 7,114
Total reporting firms: 26,390
Family-owned rate: 27.0%
Image Credit: iStock/f11photo.
31. Providence, Rhode Island
Family-owned firms: 4,662
Total reporting firms: 17,043
Family-owned rate: 27.4%
Image Credit: iStock/Sean Pavone.
30. Columbus, Ohio
Family-owned firms: 4,693
Total reporting firms: 17,136
Family-owned rate: 27.4%
Image Credit: iStock/Sean Pavone.
29. Los Angeles
Family-owned firms: 48,538
Total reporting firms: 174,395
Family-owned rate: 27.8%
Image Credit: iStock/shalunts.
28. Las Vegas
Family-owned firms: 5,160
Total reporting firms: 18,491
Family-owned rate: 27.9%
Image Credit: iStock/f11photo.
27. San Francisco
Family-owned firms: 16,381
Total reporting firms: 58,187
Family-owned rate: 28.2%
Image Credit: iStock/bluejayphoto.
26. Indianapolis
Family-owned firms: 5,784
Total reporting firms: 20,529
Family-owned rate: 28.2%
Image Credit: iStock/Sean Pavone.
25. Memphis, Tennessee
Family-owned firms: 2,563
Total reporting firms: 9,021
Family-owned rate: 28.4%
Image Credit: iStock/Sean Pavone.
24. Jacksonville, Florida
Family-owned firms: 4,722
Total reporting firms: 16,644
Family-owned rate: 28.4%
Image Credit: iStock/Sean Pavone.
23. Tampa, Florida
Family-owned firms: 10,508
Total reporting firms: 36,648
Family-owned rate: 28.7%
Image Credit: iStock/Kasra Keighobady.
22. Cincinnati
Family-owned firms: 5,697
Total reporting firms: 19,701
Family-owned rate: 28.9%
Image Credit: iStock/Scott Meyer.
21. San Jose, California
Family-owned firms: 6,667
Total reporting firms: 22,387
Family-owned rate: 29.8%
Image Credit: iStock/GerardoBrucker.
20. Milwaukee
Family-owned firms: 5,456
Total reporting firms: 18,264
Family-owned rate: 29.9%
Image Credit: iStock/Sean Pavone.
19. Dallas
Family-owned firms: 20,157
Total reporting firms: 67,063
Family-owned rate: 30.1%
Image Credit: iStock/f11photo.
18. St. Louis
Family-owned firms: 9,568
Total reporting firms: 31,685
Family-owned rate: 30.2%
Image Credit: iStock/Sean Pavone.
17. Nashville, Tennessee
Family-owned firms: 5,209
Total reporting firms: 17,223
Family-owned rate: 30.2%
Image Credit: iStock/f11photo.
16. Charlotte, North Carolina
Family-owned firms: 8,227
Total reporting firms: 26,915
Family-owned rate: 30.6%
Image Credit: iStock/Kruck20.
15. Houston
Family-owned firms: 16,621
Total reporting firms: 53,826
Family-owned rate: 30.9%
Image Credit: iStock/:Sean Pavone.
14. San Diego
Family-owned firms: 12,442
Total reporting firms: 40,177
Family-owned rate: 31.0%
Image Credit: iStock/Jerry Uomala.
13. Austin, Texas
Family-owned firms: 6,705
Total reporting firms: 21,642
Family-owned rate: 31.0%
Image Credit: iStock/RoschetzkyIstockPhoto.
12. San Antonio
Family-owned firms: 5,689
Total reporting firms: 17,846
Family-owned rate: 31.9%
Image Credit: iStock/Sean Pavone.
11. New Orleans
Family-owned firms: 3,851
Total reporting firms: 12,076
Family-owned rate: 31.9%
Image Credit: iStock/:Sean Pavone.
10. Orlando, Florida
Family-owned firms: 9,052
Total reporting firms: 28,303
Family-owned rate: 32.0%
Image Credit: iStock/SeanPavonePhoto.
9. Louisville, Kentucky
Family-owned firms: 3,999
Total reporting firms: 12,516
Family-owned rate: 32.0%
Image Credit: iStock/Sean Pavone.
8. Salt Lake City
Family-owned firms: 5,191
Total reporting firms: 15,870
Family-owned rate: 32.7%
Image Credit: iStock/Sean Pavone.
7. Oklahoma City
Family-owned firms: 5,632
Total reporting firms: 16,843
Family-owned rate: 33.4%
Image Credit: iStock/Steve Johnson.
6. Kansas City, Missouri
Family-owned firms: 7,551
Total reporting firms: 22,557
Family-owned rate: 33.5%
Image Credit: iStock/Sean Pavone.
5. Portland, Oregon
Family-owned firms: 11,650
Total reporting firms: 34,149
Family-owned rate: 34.1%
Image Credit: iStock/Sean Pavone.
4. Seattle
Family-owned firms: 17,263
Total reporting firms: 49,577
Family-owned rate: 34.8%
Image Credit: iStock/aiisha5.
3. Riverside, California
Family-owned firms: 11,212
Total reporting firms: 31,509
Family-owned rate: 35.6%
Image Credit: iStock/MattGush.
2. Sacramento, California
Family-owned firms: 7,674
Total reporting firms: 20,983
Family-owned rate: 36.6%
Image Credit: iStock/Manny Chavez.
1. Phoenix
Family-owned firms: 15,016
Total reporting firms: 39,529
Family-owned rate: 38.0%
This article originally appeared on LendingTree.com and was syndicated by MediaFeed.org.
Image Credit: iStock/Sean Pavone.
