The Family Business Program Survey has found that Connecticut”™s family businesses are dealing with problems of business succession, future viability, strategic planning, employee training and management challenges, but the biggest challenge is the overall cost of doing business. These businesses are looking to the state government to do more to attract and keep family-run businesses in the state.
The survey, conducted in partnership by Connecticut Business & Industry Association and University of Connecticut, is the first to deal specifically with family-owned businesses in the state. The survey explores key issues facing family-business owners today and examines concerns they have about the future designed to help through business planning, development and operation.
“The cost of doing business and rising health- care costs remain their most significant concerns, but family businesses also deal with succession planning and the kinds of struggles typically found in family structures,” said John R. Rathgeber, CBIA president and chief executive officer. “The ability to manage both business success and family interests is a hallmark of family-run businesses in Connecticut.”
Of respondents 82 percent said the most critical issue facing Connecticut ‘s family businesses is the high cost of health-care benefits, followed by personal income tax, estate tax reform, the corporate income tax and payroll taxes.
“Family-owned businesses help make Connecticut unique,” said Jay M. Sattler, tax partner at Blum Shapiro. “Lawmakers need to be mindful of the impact tax legislation has on businesses that provide so many jobs in the state.”
Owners have also expressed opinions that state government can do more to help make Connecticut a more attractive place for families considering opening new businesses here. According to the respondents, the most helpful actions that lawmakers could take would be reducing the cost of doing business, reducing taxes and offering tax credits, encouraging business investment, reforming property taxes and improving the regulatory climate.
“Connecticut ‘s family businesses remain resilient in the face of numerous challenges and impediments,” said Richard N. Dino of UConn School of Business. “In an increasingly complex global economy, they are demonstrating the will and ability to survive and remain competitive for generations to come.”
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