“The rate at which family businesses fail is astonishing,” said Ude, who is the Director of the USC Marshall Family Business Program. “When it gets to the second generation, only 40 percent of the businesses have survived…

…And by the third generation only 12% survive and by the 4th generation only 3% survive.” 90% of all businesses in North America are classified as family businesses, and family businesses account for 80% of all jobs in the U.S. and 65% of U.S. GDP.”, Mitch Lehman, “San Marino’s Ellis, Ude Head Up USC Family Business Program”, San Marino Tribune, September 4, 2015

“I see these family business failure rates as extremely healthy for free-market capitalism. It’s only businesses that are protected by the government, because of crony capitalism (like Too Big to Fail Banks), that never fail from generation to generation. It seems to me we should have a different and much higher corporate tax rate for big businesses that never seem to fail and therefore are likely crony capitalists, extracting economic rents from the rest of us? Maybe no taxes for free-market, family businesses, because they generate the vast majority of jobs? With that said, 100% of Americans fail to live forever (we die), yet many of us spend a lot of our time and economic resources while we are on this earth trying to live forever (and better). Clearly, a program like USC’s can make a material, positive difference for individual family businesses.”, Mike Perry, former Chairman and CEO, IndyMac Bank

Posted on September 8, 2015, in Postings. Bookmark the permalink. 1 Comment.

  1. Interesting stats….free markets cleanse themselves!

    Mark Nelson 3256 Sitio Tortuga Carlsbad, CA 92009 760.473.7558 mnelson.doit@gmail.com

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