Skip to Content

2018 Insights on Wealth and Worth — Business Owners

Putting wealth into action

Group of professionals looking at a whiteboard

The 2018 U.S. Trust Insights on Wealth and Worth® survey examines the impact that people and relationships have on business ownership, from initial funding to exit planning. The survey finds that business owners could be doing more to manage and plan for family members, employees and others who rely on the business.

Family Dynamics

Figure 1 - Percent of business with owner’s family members involved: 34% no family involvement, 66% family involvement. Role of family members involved in business: 38% senior management, 21% middle management, 14% entry-level employees, 14% decision maker, 10% board member, 7% consultant, 7% future involvement

For many business owners, the link between family and business goes back to their company’s founding. In fact, the survey showed the majority of all business owners (65%) use personal and family money to fund the start-up and early growth of their business.

Family is also involved in the company in different capacities for two-thirds (66%) of business owners. Most of these family members are involved in either senior (38%) or middle (21%) management (see Figure 1).

Family involvement in the business creates mixed feelings for business owners: 71% agree it provides a competitive advantage, while 69% say that it also complicates decision making. Additionally, 7 in 10 say it’s difficult to manage family dynamics and to separate the needs of family from those of the business.

Family business owners also cite the readiness of the next generation as a key challenge, both in terms of the next generation’s interest in taking over the business and in how to best prepare for leadership.

Related Insights

TOP