National Family Owned & Operated Businesses Day is celebrated on June 23 annually to salute the family-owned and operated businesses that have survived over time despite numerous challenges and setbacks in the market economy.
Many people find family-owned businesses more customer-friendly, approachable, and trustworthy than large consortiums. Today is a time for family business owners to recognize the efforts of their forebears who started the enterprise on which they now rely.
The day calls for family business members to gather and appreciate their legacy. It is interesting to know that family-owned businesses are some of the oldest forms of business organizations.
National Family Owned & Operated Businesses Day was created in 2021 by the AG Center — a Californian agricultural corporation. The holiday applauds all American family-owned businesses that have survived the harsh and sometimes unpredictable economic environment in the U.S. It celebrates family members whose input has elevated rather than collapsed their family business. The day recognizes those who practice the ethics and traditions passed down by their ancestors despite economic challenges.
In a family-owned business, decision-making is usually controlled by two or more members related by blood, marriage, or adoption. Although the study of family businesses only began in the later parts of the 20th Century, they are considered the oldest form of business. Farming is the first type of family business and some date back over 300 years. Shirley Plantation in Virginia is an outstanding example of a family business that has lived on for generations. Established in 1613, it existed before America gained independence. The Shirley Plantation is now in its 12th generational shift. Another successful example is Caswell-Massey. Founded in 1772, it is the oldest cosmetics and fragrance firm in America and produced President George Washington’s favorite perfume.
Currently, family-owned businesses are considered the main contributors to the world economy. The American Bureau of Census revealed that about 90% of businesses in America are family-owned. Studies have shown that about 20% of new businesses fail within a year, 30% vanish in the second year, half of all businesses close down after five years, and only 30% keep breathing after 10 years — more reasons to celebrate the family businesses that have survived for decades.
