Welcome!

News Feed Item

City and State Policies Cause Family Businesses to Consider Other Locations, New Survey Shows

Changes in Healthcare, Employee Retention, and Economy Also Top of Mind

SEATTLE, March 11, 2014 /PRNewswire/ -- The Pacific Family Business Institute (PFBI) announced today the results of a survey of nearly 200 of the Pacific Northwest's leading family businesses across diverse market sectors including professional services, manufacturing, and retail. The survey report sheds light on the current issues and challenges facing these businesses, and the strategies and initiatives they are implementing to drive growth.

"Family enterprise plays an integral role in the Pacific Northwest economy. As these businesses continue to grow and thrive, it is critical that our city and state policies create a friendly environment to keep these businesses local," said Rich Simmonds, co-director of PFBI. "However, our 2014 survey results reflect just the opposite – an increasing number of family businesses are dissatisfied with current tax policies and minimum wage regulation. As many as 72 percent would consider out-of-state locations, if they were opening a new facility."

In the 2014 Northwest Family Business Survey, most family businesses (55 percent) indicated that their city and state have business and tax policies that are not business-friendly. When asked what could be done to become more business-friendly, many participants recommended lowering taxes, providing tax credits or incentives, addressing issues with zoning and permits and maintaining the minimum wage. Also ranking high among challenges, are retaining qualified employees, changes in healthcare and insurance policies, and the economy.

Critical insights from the 2014 Northwest Family Business Survey include:

  • Increased interest in succession planning. The survey revealed tremendous progress as family businesses are expanding their planning around retirement and business succession through written plans. More than half of participants, 59 percent, have a written plan to address succession and ownership, which represents an increase of 26 percent since the 2012 survey.
  • Businesses lack incentive plans for senior management. Seventy-three percent of the family businesses have no incentive plans for non-family senior management. Of the 27 percent that have incentive plans in place, only 31 percent of those plans include equity-like compensation.
  • Businesses continue to be run by a family member with a controlling interest, with additional support from a board of directors.  Among the family businesses, 45 percent have a first-generation CEO and 38 percent have a second-generation CEO.  Sixty-one percent have either a board of directors or an advisory board in place.
  • Family businesses are more optimistic about their growth now than in 2012. Despite concerns about the economy, leaders are optimistic about the future, with most anticipating an increase in the number of FTEs and revenue. For most (61 percent), revenue increased over the past three years. Looking ahead three years, the majority of family businesses (71 percent) anticipate greater revenue.

"Business continuity planning is one of the great signals of business growth, viability and owner success. The process of choosing a successor, developing leadership and managing a transition is critical for future success," said Dr. Ron Dohr, co-director of PFBI. "However, it is important for family businesses to also remember that non-family senior executives play a critical role in the company's success. Planning should include not only a succession plan, but also an incentive plan for senior management to help the business achieve strategic goals and guide the organization's culture."

"The survey tells us that family businesses are resilient and continuing to thrive in the Pacific Northwest. Their challenges and successes are an inspiration for continued research in this area," said Dr. Mark T. Green, co-director of PFBI. "We hope these insights from family business leaders will spark conversations and bring greater understanding of the unique demands and opportunities that family business leaders face every day."  

The full report on the survey findings can be downloaded from the PFBI website at pacificfamilybusiness.com. The 2014 Northwest Family Business Survey is a comprehensive survey of family businesses in the Pacific Northwest, capturing the views of 195 family business leaders. Interviews were conducted with businesses located in Washington and Oregon in more than 10 different industry sectors, including professional services, manufacturing, construction, retail, hospitality and agriculture. Questions covered the businesses' history and future, management and governance structures, and the influence of multiple generations on family-owned businesses. More than 69 percent of the businesses reported more than $5 million in annual revenue. The research was coordinated by Riley Research Associates, a full-service market research firm, which designed the questionnaire in conjunction with PFBI's family business experts. Financial support was provided by Cascadia Capital, Perkins Coie Law Firm and the Threshold Group.

About the Pacific Family Business Institute
The Pacific Family Business Institute (PFBI) provides high-quality programs, resources and research designed to address the unique opportunities and challenges facing Pacific Northwest family businesses. PFBI works directly with family members, family business executives and professionals who advise family-owned companies. In addition, PFBI partners with universities, corporate sponsors and other Pacific Northwest organizations dedicated to the success of family business. For more information, visit www.pacificfamilybusiness.com.

MEDIA CONTACT     
Allison Rapaport         
206.466.6174
Email

Read more news from Pacific Family Business Institute.

SOURCE Pacific Family Business Institute

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"We formed Formation several years ago to really address the need for bring complete modernization and software-defined storage to the more classic private cloud marketplace," stated Mark Lewis, Chairman and CEO of Formation Data Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Most organizations prioritize data security only after their data has already been compromised. Proactive prevention is important, but how can you accomplish that on a small budget? Learn how the cloud, combined with a defense and in-depth approach, creates efficiencies by transferring and assigning risk. Security requires a multi-defense approach, and an in-house team may only be able to cherry pick from the essential components. In his session at 19th Cloud Expo, Vlad Friedman, CEO/Founder o...
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.