A primary reason for the rise and success gained by family owned businesses is that they are more than just profit. The struggles of having an empty or an overpacked store impact more than just the boss, which is all the more motivation to work harder and put your heart and soul into closing the day with a smile on your face. They are a blend of tradition, entrepreneurship, and intergenerational dynamics, which is not only heartwarming, but also inspiring to see.
Did you know that 35% of the Forbes Fortune 500 companies are family businesses? Beginning with Walmart, launched by Sam Walton in 1962 in Arkansas. When he passed in 1992, he left 50% of the company’s equity to his family who managed the shares through the Walton Enterprise. Many members of the Walton Family have served as board directors, with Jim and Steuart Walton currently serving. This may come as a shock to some, but as per a researched published by the Family Firm Institute, family-owned businesses account for 80% of the global economy. In the United States alone, 50% of the country’s GDP is generated by family businesses, as reported by the Conway Center of Family Business. It is safe to say that family businesses no longer equate to the pop stores that were seen in the 80s, and have grown to be international empires. Another such example of a small business turned international chain is Chick-Fill-A, a fast food joint from the United States. Today, there are over 2500 franchises of the brand in the US, and its sales are competitive with chains that have three times as many restaurants.
Apart from the States, family empires have dominated over the Asian market as well. Reliance Industries founded by Dhirubhai Ambani, now owned by billionaire Mukesh Ambani is another major family empire that has consumed the Indian market. At its peak, RIL became the first Indian company to achieve a market capitalization of over $200 billion. Its skyrocketing net profits have certainly defeated misconceptions revolving around family owned businesses. Family businesses are the backbone of many economies, combining the strength of entrepreneurship with the power of family bonds.
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