This is Chris Redgrave for Zions Bank Speaking on Business.
Family business is huge in the U.S. Did you know family-owned companies account for approximately 90 percent of all business in the United States, both large and small according to the U.S. Small Business Administration? And one third of all companies on the Standard and Poor 500 Index are defined as family businesses.
While 76 percent of U.S. family business leaders intend to pass ownership to the next generation, one-quarter plan to enlist outside management to oversee the actual running of the company. Family businesses tend to lean toward informality and unwritten procedures and policies so even though 90 percent agree on the importance of an exit plan, only 33 percent have a succession plan in place.
Not to mention, the success rate of transferring ownership without a plan is not very high. That's why just three percent of family-owned businesses are still operating in the fourth generation and beyond. For reasons as important as these, Zions Bank has 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. At times, non-related key employees can have more passion for the business than the children. This is the kind of information that would encourage you to have a leadership succession plan in place for the continuing health of your business.
Programs offered by Zions Bank Family Business Services address not only how to handle the on boarding of family members, but also how to create a successful experience as the new generation earns respect and builds the positive connection to the staff. Zions Bank Family Services develops a unique plan that helps prepare the management team and family members with strategies designed for them specifically to cope in the work environment more effectively. Think about the pressure in following the founder or coming up through the ranks of a legacy generational business.
It's exciting and can also be a challenge for up and coming family members so consider Zions Bank Family Business Services to help.
For Zions Bank, I'm Chris Redgrave, speaking on business.