Which States and Metros Have the Most Family-Owned Businesses?

Family businesses are the bedrock of the economy. Globally, family-owned businesses make up more than 70% of GDP and 60% of employment, delivering higher total shareholder returns, deeper feelings of fulfillment and stronger levels of employee trust and engagement.   

At the same time, business ownership accounts for a substantial level of family wealth. Business equity makes up 34% of American families’ non-financial assets, second only to primary home ownership. It can bring a family together and create a legacy for generations to come.

But the family entrepreneur lays a lot on the line when they start a small business or consider making major changes or expanding. Financial and emotional investments can be hard to keep separate from the family unit, which bears the pressures as well as the rewards of business life.

Changeable economic conditions present great business opportunities along with the risks. So, OnDeck took this moment to investigate which parts of America have the most thriving family business scenes right now — and to update our findings from our 2023 study on the state of family-owned businesses across America.

Methodology:

OnDeck gathered data on the number of firms, employees and annual payroll for family-owned and non-family-owned firms in every U.S. state and large metropolitan area from the U.S. Census Bureau’s 2023 Annual Business Survey. Next, the team calculated the percentage of family-owned businesses, total employees working for family-owned businesses and the average wage at family-owned businesses for each area. OnDeck also calculated the percentage change in family-owned businesses from 2020 to 2021.