According to statistics, 75% of current companies listed among America’s Top 500 won’t exist in 2027. At the same time, it is estimated that by 2020, more than three-quarters of the top companies will be those that we haven’t yet heard of.
What does this mean for the family business?
Approximately 35% of the 500 largest US companies are family owned. If we apply the commonly accepted 30/13/3 statistic ratio to this figure (the one that suggests that 30% of firms survive through the second generation, 13% survive through the third generation, and only 3% survive beyond that — Ward, 1987), one decade from today, only 12 of them would reach the third generation, 1.5 would reach the third, and none would go beyond.
That is one way to see it.
Another way to look at it would be to see that in the future there will be…
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