A new study found that Tucson is the metro area with the most family owned businesses, where 33.95% of firms are family-owned.

This comes from OnDeck, who looked at the most recent edition of the U.S. Census’ Annual Business Survey, which covers the 2022 reporting period, to reveal the trends facing family-owned businesses in America in today’s economy: https://www.ondeck.com/resources/states-metros-family-owned

The ranking below shows the metropolitan areas with the highest and lowest proportions of family firms:

The U.S. Small Business Administration defines a family business as one that is majority-owned by at least two members of a family. Around 27.3% of businesses are family-owned — most of these are small businesses (fewer than 500 employees), and
indeed 72.8% have fewer than 10 employees.

Family businesses are a crucial part of the U.S. economy, generating over half of the country’s GDP and employing between 26.70% and 46.74% of a state’s workforce, according to Census Bureau data. They are also a critical part of American culture, reinforcing the country’s entrepreneurial ethos and binding communities together. Family-owned businesses face many challenges — from competition with corporate chains to securing small business loans and business lines of credit. Yet they remain the backbone of the American economy and pillars of local communities.

To celebrate family-owned businesses, OnDeck analyzed the latest available Census Bureau data on family business prevalence, employment and wages to uncover the facts behind family-owned businesses in America. They then compared their findings to the previous year’s data to help reveal the trends facing family businesses in today’s economy.

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Key Findings

● Idaho is the state with the highest concentration of family businesses — 39.77% of all businesses, up from 39.45% the preceding year.
● In Idaho, 46.74% of all employees work for a family business — the most of any state.
● In New York, just 20.05% of all businesses are family-owned — the lowest figure of any state.
● The metropolitan area with the most family businesses is Tucson, Arizona (33.95%).
● The state where family business employees have the highest average annual pay is Massachusetts ($59,577).
● Family businesses in Kentucky pay the lowest average salary ($40,523).