Facts & figures from the Usa to Australia

Meritocracy The strength of parental relations

WORLDWIDE The vast majority of business enterprises world wide are family firms. These are some relevant facts and figures compiled from the website of the Family Firm Institute.

Facts & figures from the Usa to Australia

UNITED STATES FEMALE POWER • The greatest part of America’s wealth lies with family-owned businesses and these comprise 80-90% of all business enterprises in North America. • More than 30% of all family-owned businesses survive into the second generation. Twelve percent will still be viable into the third generation, with 3% of all family businesses being run by the fourth-generation and beyond. • The leadership of 39% of family-owned businesses will change hands within the next five years. • 34% of family firms expect the next Ceo to be a woman. • 85% of family-owned firms that have identified a successor say that business ownership will remain within the family.

CANADA’S FAMILY BUSINESS •It is estimated that Canada’s family businesses employ 4.7 million full-time and 1.3 million part-time workers. • 27% of Canada’s family business leaders will retire within the next five years. Another 29% will retire in six to 10 years, and a further 22% will leave the family firm within 11 to 15 years. • Despite such anticipated retirements, only 44% of Canadian family businesses have an exit strategy and only 29% have a succession plan. • Unlike their U.S. counterparts, who generally view the family business as a legacy to succeeding generations, most Canadian family business owners seem more concerned about how the business will benefit them individually.

BRAZIL’S RURAL WORLD • The majority of Brazilian businesses are family owned. • In 1999, there were approximately four million registered family-owned businesses in Brazil. • Brazil is home to twenty centuriesold family-owned firms that are now in their fourth or fifth generations. • Brazilian family-owned farming enterprises employ 77% of the rural workforce and comprise 84% of rural enterprises in the country.

AUSTRALIA 50% OF TOTAL WORKFORCE • Australian family businesses form a significant part of the Australian economy, that is 67% of all private sector firms, and employ more than 50% of the workforce. • A comparison of 1997 and 2003 by the Australian Family and Private Business Surveys reveal that: - 68% of Ceos want to retire within the next 10 years (up 8% from 60% in 1997); - 44% of private family-owned businesses want to sell now or within 10 years (up 2% from 42%).