Studies have shown that family enterprises are more successful than their non-family-owned counterparts. Boston Consulting Group found that publicly traded, family-controlled firms generate higher profits and are less likely to be slowed down by internal conflicts
Then again, working with those we love can bring out the worst in us. Watch HBO’s smash hit Succession to see what can happen when sibling rivalry sneaks into the boardroom.
But for good and bad, family-run businesses are an important tradition in the USA. That’s why OnDeck looked at data from the U.S. Census Bureau to see which states and metro areas have the highest percentage of family-run companies. And it put the findings together in the maps and infographics below.
The maps reveal that South Dakota has the biggest proportion of family-run businesses; over 40% of enterprises in The Mount Rushmore State are operated by families working as business partners. That figure is even higher when looking at South Dakota’s proud agricultural industry – an incredible 98% of farms in South Dakota are family-owned.
The Northeastern states have the lowest number of family-run businesses. New York scored the lowest, with just 20.4% of state businesses family-owned. Neighboring New Jersey and Connecticut are two more states where family businesses aren’t exactly thriving. Only around 1 in 5 companies in both states belong to families.
When it comes to family-run companies in Metro areas, nowhere can get close to Lima, Ohio. This municipality is where over 1 in 2 businesses (56.2%) have stayed in the family. Its nearest rival, The Woodlands in Houston, scored just 29.8%.
Mike Powell, an owner of a family-run store in Lima, explains why his home-city is so special. “We’re a small, tight-knit place. Our population is less than 36,000. We benefit from close cooperation. We care about each other in Lima. We support each other. If one of us goes down, it hurts the whole community.”
Speaking of sticking together, OnDeck also analyzed the number of spouse-owned businesses.
New Hampshire is one of the states where marital bliss doesn’t extend to the business world; only 8% of enterprises in The Granite State are run by a husband and wife management team.
Things are very different in Idaho, where spouses own 35.6% of commercial enterprises.
The metro with the highest percentage is Sherman-Denison, Texas. Over 41.4% of firms are owned and managed by married couples.
Check out the maps and tables below for a full breakdown of the data.
Which States Have the Most Family-Owned Businesses, courtesy of OnDeck