According to the Family Business Alliance, 80–90% of businesses in America are family-owned. This number includes companies ranging from the literal ‘mom & pop shop’ around the corner to Fortune 500 businesses like Walmart. It’s easy to see why it’s attractive to start a company with a family member or other person close to you—shared values, deep trust, and loyalty jump to mind. I’ve worked with a few of these types of businesses, and I’ve seen first hand that it can also be tough: blurred lines between personal and work life, a lack of outside influences and ideas, and the risk of work conflict impacting the personal dynamic or vice versa.
Read MoreWe recently shared some data from Kenan-Flagler Business School’s Trends in Entrepreneurship Report that indicated businesses with multiple founders are more likely to reach ‘unicorn status’ (valued at $1B) than those with single founders. This 2021 data seems to be in direct conflict with a report from researchers out of Wharton and NYU a few years ago, who found that single-founder companies are more likely to succeed.
Read MoreLet me tell you some bad news, and it’s something you probably already know: working with a partner can be complicated. Christopher Law is a Ph.D. candidate at Kenan-Flagler, researching the impact of the cofounder dynamic on the company’s culture. His research is far from complete, but Law and I recently spoke about what he’s learning from his conversations. As it turns out, the cofounder relationship is frequently boom or bust.
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