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Some Factors in the Profitability of Small Family Businesses

Diane Masuo and, Gary Li (July, 2001)

Summary

Operating a family business can be a profitable and rewarding experience. But there may be costs to members of the family. Family members often work for no pay, and the business may utilize resources that would otherwise have been available for family use. Data from a national survey of family businesses is discussed in this factsheet in an effort to inform prospective entrepreneurs about characteristics of successful family businesses.