Mainebiz

W W W. M A I N E B I Z . B I Z 17 J U N E 2 8 , 2 0 2 1 F O C U S FA M I LY - OW N E D B U S I N E S S Generation gap Family-owned firms are an economic force to be reckoned with worldwide, generating an estimated 70% to 90% of global GDP, according to the Institute for Family-Owned Business. ey have also been shown to have a 6.55% higher return on assets than other firms. Despite a strong financial incen- tive to remain family-owned, that gets harder with each generation, with 30% of firms making the transition from the first to second generations, 12% from second to third and only 3% from third to fourth, according to data cited by IFOB. Other research, by the Conway Center for Family Business in Columbus, Ohio, shows an ownership transfer between the first and second generations of only 19%. e center says that may be due in part to Millennials cashing out of traditional family busi- nesses to start other ventures that are still family-controlled. Among younger generations that stay in the family business, fifth-genera- tion owners have much lower stakes and less involvement in management than previous generations, according to the 2021 annual report by Family Enterprise USA, a Washington, D.C.-based research and advocacy group. In Maine, IFOB's Wygant Fossett observes many younger generations involved in active management but not as many with full ownership. She also notes that it's sometimes hard for the older generation to pass the baton to those next in line. Even after ced- ing ownership, "they may not be able to completely walk away," she says. at said, every family — and every business — is different, as Colleen McCracken knows after running two family-owned firms: Auburn-based furniture maker os. Moser and the Westbrook-based dog-products com- pany formerly known as Planet Dog, in which she also had an ownership stake before it was sold in 2018. McCracken, now a self-employed strategic business advisor, recalls that the founder of os. Moser was still active in the business at that time even with the second generation on board, while at Planet Dog only the founder was involved though active in product design and development. "e ability of the CEO to adapt to the situation is really key," McCracken says. "I used to say to people 'I really don't have an ego,' which allowed me to play that role pretty well … e way I saw success was the ability to bring HELP US FORGE A HEALTHIER FUTURE. INVESTING IN MAINE MEDICAL CENTER IS INVESTING IN THE NEXT CENTURY OF LEADING CARE. Your generosity will make our northern New England communities some of the healthiest in America by: To be a part of the mission, go to www.mmc.org/next150 • Building more modern and adaptable facilities. • Educating a highly-skilled, stable care team. • Innovating and advancing clinical research. • Bringing quality care to more and more people. Let's better our future together by starting with better health. C O N T I N U E D O N F O L L OW I N G PA G E »

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