Mainebiz

W W W. M A I N E B I Z . B I Z 11 N OV E M B E R 4 , 2 0 2 4 F O C U S FA M I LY- O W N E D B U S I N E S S All in the family: An overview A business is considered family-owned when two or more family members own the majority of the busi- ness. Most family-owned firms are small businesses with fewer than 500 employees. In 2021, over a quarter (27.3%) of all firms were family-owned businesses. A higher proportion of these family-owned busi- nesses operated in the goods-producing sector (22.1%) compared to their nonfamily counterparts (16.5%). Like other businesses, the bulk of family-owned businesses were micro businesses with less than 10 employees. Fast facts Family businesses were more likely to operate firms with over 10 employees when compared to their peers. Family-owned businesses were less likely to be startups when compared to other business owners. Family-owned employment barely grew compared to other businesses. Slower growth Employment by family businesses grew less than total employment between 2014 and 2021. Family employment grew by 0.8% and non-family employment grew by double digits at 11.5%, while total employ- ment growth was 7.6% overall. During this period, the share of employment by family businesses ranged from 33% to 38.1 percent. In 2021, the employment share of family businesses in the labor force was 34.1%, which equates to the employment of 42.3 million workers. Between 2017 and 2021, employment by small and large (more than 500 employees) family businesses fell by 14.3% and 27.8% respectively. However, the decline in employment by non-family businesses was less steep for both firm sizes. Employment for non-family firms was down by 1.3% for small businesses and 4.9% for large businesses. Among Maine businesses, the term "family owned" can have vastly different definitions. While the Small Business Administration says most family-owned businesses have fewer than 500 employees, the bulk of them have fewer than 10 employees. In Maine, family-owned businesses can include large, legacy businesses like retailer L.L.Bean, which has more than 3,300 Maine employees, and lumber companies Hammond, Hancock and Pleasant River (all of which are among the top 10 family-owned businesses in Maine, see Page 30). S O U R C E : Small Business Administration, April 2024 Upgrade to Energy Efficient Technology with Efficiency Maine Incentives Humble Comfort Food and Spirits in Brewer worked with Efficiency Maine to upgrade to LED lighting and electric heat pumps. These improvements enhance comfort while reducing energy costs for the restaurant. "The restaurant is much brighter and warmer since the new technology went in," said restaurant owner, Meghan Black. "I remember the first day I walked past the heat pump and it blew warm air on my face and it was the best feeling in the world." For more information, visit efficiencymaine.com/at-work With the recent upgrades, Humble Comfort Food and Spirits could potentially reduce their annual heating and cooling costs by approximately $200.

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