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This is Chris Redgrave for Zions Bank Speaking on Business.
The economic impact of family-owned business in the United States is impressive, representing approximately 92 percent of 22 million companies. And when we look at job creation, the majority is coming from family businesses in the U.S.
These aren't all mom and pops because 60 percent are publically traded and 37 percent are Fortune 500. Yet, in a recent PricewaterhouseCoopers survey of more than 1,600 companies around the world, they discovered less than 50 percent have a succession plan in place, with almost 30 percent expecting to change hands in the next five years. It's hard for people to look at succession planning because it deals with mortality, and as a society, we shy away from thinking about the end of what we enjoy.
For reasons as important as these, Zions Bank has launched their Family Business Services to work with our small business community in Utah and Idaho. Supporting business structure and culture with strategic services can strengthen your overall operation and provide peace of mind. It can be challenging for new family members to start in the family business not understanding the hurdles and frustrations unique to them.
In the next 10 to 15 years more than 70 percent of the privately-owned businesses in the U.S. are expected to change hands. If you look at the success rate of second-generation business passing to third and beyond you understand the significance in planning for the transition, while keeping peace in the family.
For Zions Bank, I'm Chris Redgrave, speaking on business.
Zions Bank Family Business Services Talk to your local Zions Private Banker or Wealth Management Advisor for more information.
