Forbes Study on Family-Run Billion Dollar Businesses Versus Individual Billion Dollar BusinessesBusinesses

Forbes did a study of billion dollar fortunes and analyzed them in terms of family-run versus individually run businesses. 42% of the businesses that generate a billion dollars or more in wealth are family run businesses versus 58% of billion dollar businesses that are run by non-related individuals. Famiiy managed fortunes are seen the most in Hong Kong, India, France, and the Middle East. India has the highest percentage of family-run fortunes with 73%. In the United States, 58% of the fortunes are non-family managed. The Waltons of Walmart are America’s best example of a family-run business.

Forbes calls China and Russia lone wolves because they have high percentages of individual fortunes. They also have a large number of female billionaires because communism has made the sexes more equal.

As a general rule, the older the economy, the more businesses that are passed down from generation to generation. Regardless of the economy though, more than have of businesses are self-made individuals. Gaming, technology, and logistics usually end up being an individually run fortune. Real estate, finance, sports, construction, and food industries are more prone to be run by families. Forbes also analyzed growth in fortunes and found that individually run fortunes generally grow faster than family-run fortunes.

See Family Business Dynasties Partly Driven By Cuture, Industry, Private Wealth Magazine, Apr. 18, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.