A recent article from USA Today suggests that being family-owned helped some small businesses survive the recession better than their non-family-owned counterparts.
While roughly 90 percent of U.S. businesses can be described as “family owned,” there are some key attributes about this particular type of business that could be huge benefits when things get rough. Experts cite the ability to make quicker decisions, a reluctance to cut skilled workers, and a focus on longer-term strategies as some of the big trends within family businesses.
While many businesses scrambled to avoid layoffs during the recession, “there is research that indicates that family-owned businesses didn’t downsize as swiftly or as much as non-family businesses did,” Pramodita Sharma, a business professor at the University of Vermont, is cited as saying in the article.
Since a good deal of these family owned businesses are also small businesses, there are of course some disadvantages that come along with being small in size. According to the article, many small family-owned businesses are still struggling with knowing where exactly to go for the financing they need to survive.
Direct Capital, a family-owned business itself, urges other small family-owned businesses to seek out nontraditional lenders when a need arises for financing. A specialty lender, like Direct Capital, is uniquely poised to serve the needs that small business owners face, often with a lot less red tape that you’ll find at a traditional bank.
Though confronted with a greater number of hardships, it’s no doubt that small business owners, including those of family-owned businesses, often possess an entrepreneurial spirit and a drive to succeed that cannot be diminished even during the toughest times.
Is your small business family-owned? How did you weather the recession?
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