In a world dominated by the relentless pursuit of speed, scale, and disruption, it's easy to overlook the quiet, enduring power of family businesses. These are the unsung heroes of the American economy, quietly driving growth and stability, often in ways that go beyond mere financial metrics. As Byron Trott, the legendary chairman and co-CEO of merchant bank BDT & MSD Partners, astutely observes, family businesses are 'the quiet engine driving the economy.'
What makes this particularly fascinating is the diversity of these businesses. From the grocery stores we frequent to the hotels we stay in, from the newspapers that keep us informed to the cosmetics that enhance our appearance, family businesses are everywhere. They own some of the most popular brands in various product categories, from M&Ms to Perdue chicken and Quikrete concrete. And they're not just confined to urban centers; they're spread across 31 different states, from Arizona to Wisconsin to North Carolina.
One of the most intriguing aspects of family businesses is their ability to endure across generations. Take Enterprise Mobility, for instance, the car rental giant now run by Chrissy Taylor, the granddaughter of founder Jack Taylor and daughter of chairman and former CEO Andy Taylor. Andy Taylor's wisdom is revealing: 'The thing I wanted to pass along to the kids was that having a privately held family business is a privilege and you should treat it as such.' This sentiment underscores the importance of stewardship and resilience in family businesses.
The Forbes list of America's top family businesses offers a fascinating glimpse into this world. Among the 100 largest family businesses, 67 are still privately owned, while 33 are publicly traded. The largest private family business by revenue is Cargill, the $154 billion food and agriculture giant, 88% owned by the descendants of its founder, William Wallace Cargill. The biggest public family business is Walmart, with a market cap of over $1 trillion, controlled by the heirs of its late founder, Sam Walton.
What's truly remarkable is the age diversity of these businesses. The oldest on the list is Levi Strauss & Co., founded in 1853, while the youngest is Sonic Automotive, founded in 1997. This range of ages highlights the adaptability and longevity of family businesses.
However, defining what constitutes a family business can be challenging. Statistics vary based on the definition used, and Forbes consulted with experts to develop its methodology. The list includes businesses where the founding families still own a significant stake, but it also includes majority-employee-owned firms like Fidelity and Publix, where the founder's heirs own at least 20% and serve as executives or directors.
For public companies, Forbes used a threshold of 10% family economic ownership, combined with family board seats or C-suite roles. This approach ensures that the list captures the essence of family businesses, even if they don't meet the traditional definition.
In conclusion, family businesses are more than just a collection of companies. They're a testament to the power of endurance, stewardship, and trust. As we navigate an increasingly fast-paced and disrupted world, these businesses remind us of the value of stability and the importance of passing on wisdom and values from one generation to the next. In my opinion, they are the backbone of a resilient and thriving economy.
