As the economy contends with a worker shortage and the threat of a recession, 71% of the state’s family-run businesses earned a profit last year, according to CBIA’s annual Connecticut Family-Owned Business Report, which was released Thursday.
Of the family firms that didn’t see a profit last year, 16% posted losses and 13% broke even, according to the report, which was revealed at Hartford Business Journal 2023 Connecticut Family Business Awards event.
The study found that 43% of family businesses said their top investment priority was employee recruitment and retention, as the labor crisis persists.
One-quarter of businesses surveyed said proximity to customers was the main advantage to being in Connecticut, followed by quality of life (22%) and the skilled workforce (17%).
The biggest challenges in Connecticut were high state taxes, over-regulation and the state’s business climate, according to 32% of the family businesses surveyed. Those challenges were followed by healthcare costs (13%), and employee recruitment and retention (13%)
The study found that most family-owned businesses are small, with 93% having less than 200 employees and 60% having less than 25 employees.
The Connecticut Family-Owned Business Report is a collaboration between CBIA, Hartford Business Journal, Hinckley Allen, Connecticut Small Business Development Center, Connecticut Wealth Management and the Family Business Program at UConn.
View the full report below:
