Family Businesses Play a Key Role in the American Economy

Darin Pastor pic
Darin Pastor
Image: capstonefinancialgroupinc.com

Financial sector executive Darin Pastor, currently the chairman and CEO of Capstone Financial Group Inc., previously served high-profile companies such as JPMorgan Chase & Co. and Prudential Insurance Company of America. He comes from a family of entrepreneurs: In the 1940s, his grandfather established a Buffalo, New York, franchise for the Pepsi Cola brand. From 1989 until 1996, Darin Pastor served the Pepsi Cola Buffalo Bottling Corp. as division manager, until his family sold the business.

Family-owned businesses have always been a major driver of the economic fortunes of the United States. One 2011 report from Texas A&M University showed that fully a third of all companies on the Standard & Poor’s 500 Index were family-owned. The Small Business Review went a step further in pointing out that these companies also tended to be leaders in boosting both returns on investment and job growth.

In large part, say experts, this is due to the fact that family-run companies tend to demonstrate greater stability, as their principals look more toward the long term in their strategic decision-making. Employees at family companies also often feel more loyal to their employers’ goals.

And not all family-owned businesses are small corner stores: Walmart, Cargill, and Porsche are only a few of the major global corporate brands that continue as true family-owned businesses.

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