Family Businesses Outperform Non-Family Firms

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June 29, 2006 by Dane Carlson | 0 Comments

Inc.:

Family businesses are more profitable and create more jobs than non-family firms, according to a new study.

The study, which compared S&P 500 and Fortune 500 companies based on net profit margin, employment, revenue, and gross income growth between 1992 and 2002, concluded that those started by families are more successful than their non-family counterparts. For example, the average profit margin for family firms was 10%, two points higher than for non-family firms.

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