Why Strong Family Businesses Are What America Needs Most Right Now
Family businesses are what the country needs right now, let alone strong ones. And family-owned businesses are not to be underestimated, some of them have been running for centuries. Also, you know that these family businesses can run forever since the owner was taught directly by their parents or grandparents.
Unfortunately, many family businesses couldn’t survive, not because of mismanagement but because of big corporations driving them out of business or simply bought them out. Usually, big corporations would put pressure on these family businesses by stealing their customers before buying them.
We need to spread awareness about how important these family businesses are to America. They are what we need most right now. And I’m going to tell you exactly why that is true, the Strong Family of America is good for businesses and the mental health of everyone in the USA.
Family businesses are the largest employers
Family-owned businesses care more about their employees. Because most of the time, their employees are people whom they personally know. Could be their neighbors, relatives, acquaintances, or friends.
It’s not uncommon in many countries that family businesses are the largest employers in the country. They stabilize the impact of an economic or financial crisis by hiring people when big corporations simply can’t and when people are looking for a job after getting fired.
We know that many people lost their jobs during the pandemic and most big corporations can’t afford to hire new employees since they’re already bleeding money (I will get into this later). This is when people are turning to family businesses. And why many family businesses are thriving instead of collapsing.
Family businesses are more consistent
It is a fact that family businesses are frugal no matter what the situation is. The moment you walk into their offices, you notice that they don’t have luxurious offices and furniture. Because many family businesses believe that spending less means earning more and company’s money is the family’s money. So, they don’t want to spend or invest their money on luxuries and other irrelevant stuff.
The same thing goes when it comes to their capital expenditures. Many family businesses don’t want to spend more than they earn. You may think that this is common sense, but the fact is, corporate executives, believe in the opposite.
Family businesses are more cautious and stringent when it comes to investing their capital. They only invest in strong projects, thus while they often miss big expansion opportunities, they’re also unaffected in times of crisis. This is why people can always find jobs in family-owned businesses.
A strong family business is good for the local economy
I already talked about how family businesses are the biggest employers in many countries. This makes a strong family business a great benefit for the local economy.
Imagine having to do one hour or even longer commute to go to work. Well, this is actually a common thing for people who work for big companies. But imagine if you can work for a local, family business instead. And a strong family business not only able to hire more people but also able to pay a competitive salary for each of their workers.
Family businesses know the local areas
Naturally, family businesses know the inside and out of the local areas. They know the people, economic situation, areas, and every other little tidbit. This helps them price their goods and services better and stay available during times of need.
A strong family business can also acquire or develop a business relationship with other family or small businesses. Being familiar with the local areas makes it easier for them to do this and help each other whenever they need it.
Family business retain their talent better
Have you ever met people who are a master of what they do and have been working the same job for decades? There is a high chance that they’re working for or the owner of a family-owned business.
This is because family businesses are great at retaining their talents. Once a talent is hired and nurtured, they will always have a place in the business as long as the business is alive. Family businesses know the value of trust born from a healthy and long relationship.
The same goes for family members who are working in the business. The relationship between each family member is stronger and closer thanks to the family business.
Family businesses are the heroes that we need
I can’t stress enough how important family businesses are. Especially during uncertain times such as now, we must take care and value family businesses. If the trend continues, family businesses can be much bigger and more attractive than big multinational companies.