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Family-owned businesses have a profound impact across the globe, as well as here in Central Oregon. Across the world, around 70 percent of our global GDP and 60 percent of our total employment comes from family-owned businesses, and in the U.S., the numbers show the beneficial trends that come with being family-owned.
In the US in 2023, 59 percent of family-owned businesses grew, while 36 percent of those grew by ten percent or more. 74 percent of family businesses have been operating for 30 years or more, highlighting their longevity and commitment to sustainable business practices. Family-owned businesses generate 54 percent of our GDP in the US, and employ 59 percent of the American workforce, accounting for 83.3 million jobs and contributing $7.7 trillion annually.
Here in Oregon, these trends remain true. Oregon saw a change in our percent of businesses that are family-owned; in 2022, that was 30.71 percent, a slight increase from the previous year’s 30.46 percent. However, certain industries are not accurately represented with this average figure. For example, the Oregon Farm Bureau reports that 97.3 percent of our farms and ranches are family-owned and operated.
At 30.71 percent, Oregon ranks #14 across the 50 states in terms of percent of businesses being family-owned. When compared to other metro areas across the country, Portland comes in at #10 for the same statistic.
While Oregon’s percent of family-owned businesses increased, their average annual wages actually decreased significantly. In 2021, the average wage at a family-owned business in Oregon was $60,011. In 2022, it had dropped to $50,541. Granted, takeaways from these statistics must take into consideration the delay in gathering information, and the growing amount of resources that can help change that stat.
For example, many of the small-business catalysts in Bend that help get family businesses off the ground are more popular than ever. EDCO, OSU-Cascades and COCC in particular have several resources and programs that connect small businesses and startups with the mentorship, knowledge and resources they need to succeed.
Central Oregon has a wealth of successful, longstanding family-owned businesses. Different business directories and listings provide different figures, but there are at least 60 small, family-owned businesses in this region alone, with more large, family-owned businesses not being counted by that number. Many industries, particularly family-owned restaurants, are underrepresented from lists like these, making it difficult to track the actual figure. The real number could be upwards of 100, if not more.
These businesses provide a substantial economic impact on a variety of industries, and like with any business structure, a family-owned model comes with its own benefits, along with a few quirks.
Take Heliladder, for example. Heliladder was founded by husband and wife team Dale and Susie Neubauer in 2014. The company designs and creates ladders that are built specifically with helicopter maintenance in mind, helping increase readiness and reduce maintenance time. For many hospitals and branches of the military that use their product, this translates to more time and opportunity to save lives.
Dale spoke about the benefits of being-family owned, and pointed to two main factors. First, family members can usually have a deep understanding of your passions and thought process. Sometimes other people might not see or understand someone’s business vision, and sometimes they don’t want to commit the effort or energy it would take to understand. With family, there can oftentimes be an innate sense of trust and understanding; someone who is willing to listen, even when the ideas are nothing more than a rough sketch on a scrap of paper.
Second, Dale pointed out that family members are normally comfortable with being honest, both in opinions and in questions. “They have a comfort level in being honest with me, countering me, saying ‘I don’t think so,’” said Dale. “I make mistakes like anyone else, and family can be frank with you, sometimes more so than a traditional employee who doesn’t want to broach that professional relationship. There is value in disagreement. My family, they get my values and passion, but they are willing to counter me if needed.”
Along with those factors, family businesses are an opportunity to connect a family, and to provide opportunity, along with generational capital. However, like any business model, the family-owned model can come with drawbacks.
According to Dale and many others who run family-owned businesses, it can sometimes be difficult to separate work life from home life.
“It can be hard to break away from the business as it’s always front and center, at work, at home, at dinner, and on weekends,” said Dale. “Your financial viability is based on the success of this one business, and you do end up putting in longer hours, with more relaxed employee relationships. It’s a somewhat nonstop, steady load and finding a good work/life balance can be hard to form, because family and work are intrinsically connected.”
Still, Dale says that it has all been worth it. Not just to achieve his goal and bring an innovative new product to life, but to do so with family at his side, showcasing the power of hard work and understanding one another’s passion.
It’s that passion and mutual understanding that helps make family businesses as popular and long-lasting as they are, as echoed in this statement from EDCO, “The longevity and prevalence of our family-owned businesses is more than just a success story, it’s a reflection of Central Oregon’s character. It shows a deep-seated culture of mutual support and a dedication to showing up for the community that has been passed down through generations.”
