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News / Business / Columnists

Brunell: Family businesses backbone of America

By Don Brunell
Published: June 18, 2019, 6:05am

During the 1992 presidential campaign, then-candidate Bill Clinton famously intoned, “I feel your pain,” reassuring voters he understood what they were going through. Similar statements of empathy have become a staple for politicians. They don’t always ring true.

Take family business owners, for example.

Family businesses account for 50 percent of U.S. gross domestic product, generate 60 percent of the country’s employment, and account for 78 percent of job creation, the Conway Center for Family-owned Business reports.

Most elected officials have no idea what it’s like to put their life savings on the line 12 to 16 hours a day, scrambling to make ends meet. Families risk everything to meet payroll and invest in equipment in spite of waves of government regulations, taxes and fees.

One politician who got that firsthand experience was former U.S. Senator and presidential candidate George McGovern (D).

In a 1992 Wall Street Journal column, “A Politician’s Dream is a Businessman’s Nightmare,” McGovern described his experience running a Connecticut hotel and conference center. He went bankrupt, a failure he attributed to regulations that were passed with good intentions but no understanding of how they burdened small business owners.

McGovern became an advocate for regulatory reform and lawsuit reform, saying, “I…wish that during the years I was in public office, I had had this firsthand experience about the difficulties business people face every day.”

While politicians often tout their support for family-owned business, they are the least understood and most overlooked political constituency.

Family-owned businesses are America’s economic backbone.

According to the University of Vermont, there are 5.5 million family-owned businesses in America. Nearly 60 percent of all family-owned businesses have women in top management.

More than 30 percent of all family-owned businesses survive into the second generation but only 12 percent will still be viable into the third generation.

One third-generation family business that is thriving is Dick Hannah Dealerships in Vancouver. It started in 1949 when William Hannah opened a Studebaker dealership.

In 70 years the Hannah’s have taken calculated risks by expanding into new and previously owned car and truck dealerships in the Vancouver-Portland area.

They just opened a multi-million dollar state-of-the art collision center in Vancouver. All estimates, work and deliveries are handled inside the facility.

For environmental and worker protection, it has advanced dust and fast-drying spray paint systems which treat water and air before leaving the shop.

There is a sophisticated vacuum system that collects dust that would normally end up on the floor.

The collision center is unique for its new ways of approaching repairs. Vehicles are elevated waist high to avoid workers having to crawl underneath. All of the services are contained within the shop, avoiding time delays by sending autos off-site for steering alignment and windshield replacement.

Finally, before exiting the center, technicians restore vehicles to their pre-collision condition. They completely reinstate and calibrate the crash avoidance and in-car electronics.

Just as Hannah strives to completely satisfy customers so they will return, that is the hallmark of successful businesses. That’s one way small family-owned businesses compete with large corporations and their vast resources.

In the end, if customers feel valued and are treated right, they return.

Those are values which entrepreneurs, not government, create but which elected officials can hamper if not understood.

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