Profile Of Family Business Owners

Tuesday 12 February, 2008

by MGI Boyd

In Australia, the family business has existed for an average of 28 years (34 years in 2003). Information on the background of family business owners reveals that the average age is 55 years (53 years in 2003), ranging from 33 years to 80 years.

Of note, most family business owners are in the 50-65 age bracket (see Table 3.1);

• Very few are under 40 years of age;
  
• 14% of owners are over the age of 65 years;
  
• 6.4% are in their 70s; and
  
• 0.4% are in their 80s. These senior entrepreneurs would have taken advantage of post World War II opportunities to set up their businesses. 

In line with 2003 reports, findings suggest that a substantial proportion of owners are not only actively involved in their enterprises, but also reluctant to relinquish control, if not retire to non-business activities, with 44% indicating that they see themselves working beyond age 65. Comparisons with the US reveal that 29% are aged 60 years or above, with 11% aged over 70 years (Mass Mutual & Raymond Institute, 2002).

Country of origin and first language

With regard to country of origin, almost 79% of owners are Australian born, 15% from UK and Europe, 1% from Asia, and the remaining respondents are from other countries (e.g., USA, NZ). About 97% reported that English is their first language. These proportions reflect those of our 1997 and 2003 Reports.

Education

Over 50% of owners have tertiary/post secondary qualifications compared with 48% who have only secondary-level education. The 2002 Massachusetts Mutual report indicates that 48% of US owners are tertiary qualified (college graduates).

Gender

Approximately 96% of owners are male (98%) and 4% female (2%). Compared with 2003, a decrease of 6%. The generational breakdown of female owners is revealing: 3% for first generation, 6% for second, and 11% for multigenerational family businesses.

Marital status

The majority of owners, 90% (78%) are married, 3.5% are separated/divorced, and 2% are single.
Please note that in the body of this Article, except in Tables and where the context makes it clear, statistics for nonfamily business owners are included in parentheses. 

Source:ceoonline.com