Dr. Pramodita Sharma recently returned from Kaohsiung, Taiwan where she was the keynote speaker at the 2011 Asia Pacific Successful Transgenerational Entrepreneurship Practices (STEP) Family Summit.

STEP is a global applied research initiative that explores the entrepreneurial process within business families and generates solutions that have immediate application for family leaders.

Dr. Sharma spoke about “Governing a Family, a Firm, and a Family Enterprise: How a Family Enterprise can Achieve Sustainability.”

“I was amazed at how the issues faced by family enterprises around the world are so similar,” said Dr. Pramodita Sharma, of the University of Vermont School of Business Administration.  “My talk provoked similar thoughts and inquiries that I have experienced in the US, Canada, Mexico and Europe.”

Participants in the Summit participants came from all over the world including Australia, Canada, Thailand, India, Malaysia, Japan, China, UK and the US.  And despite the diversity, Dr. Sharma noted the unification around issues that concern leaders of family enterprises, particularly succession, trans-generational entrepreneurship, governing a growing firm and family, managing sibling relations, and motivating next generation family and non-family members.

“These are all issues that we address through our Family Business Initiative and bring to the attention of our students in our Family Business course,” said Dr. Sharma.  “It was an honor for me to be invited to deliver this keynote speech at this important Summit and spread the word about our initiatives at UVM into this region of the world.”

I begin with the case of a US family owned business that distributes home heating oil. I am not specifying any one particular business; there are many of these types of family-owned businesses in many industries and likely several in your region.  Perhaps their oil may be refined in the USA, but then is the refinery American owned (read: BP)?  So then is the source of the crude domestic or imported? And if it is imported, can they claim to be “Made in the USA” of imported products.

The State of Vermont has long struggled with this. Many companies which to cash in on the cache of “Vermont Made,” however state law has been very strict about what truly constitutes “Made in Vermont.”   For example, pork products that are cured and butchered here, but the swine are raised in Kansas, cannot claim to be Vermont Made, i.e. Dakin Farm (http://www.dakinfarm.com/) and Harrington’s (http://www.harringtonham.com/). The same holds true for many maple producers who wish to import cheaper Canadian sap (no disrespect to our fine Canadian neighbors) and then boil here for Vermont-Made Maple Syrup, and then charge a premium for the product.  No can do, so says the State of Vermont and rightfully so. For more information, please see the “Vermont Origin Rule: http://www.atg.state.vt.us/assets/files/Vermont%20Origin%20Rule%20FAQ.pdf.

If we extrapolate this out to a national level, where is the distinction between American Made, American Crafted, or even American Owned? Toyota, a Japanese family business, actually makes the “most American made” car, the Camry, even more so than a Ford (family business) truck. “Of the top 10 vehicles on the American Made index, five of them come from Japanese car makers.”  Source:  http://blogs.wsj.com/drivers-seat/2010/06/23/made-in-usa-a-toyota-is-most-american-car/.

I think many companies would be hard pressed to claim they are truly “Made in the USA” with any extensive examination of their supply chain. Raw materials are often sourced globally, equipment is a mesh of international parts and ingenuity, and distribution of goods and services should be boundless in a free economy.

As director of a university based family business center, with students and faculty from all over the globe, my primary focus has always been on the owner and their successors (or lack of) and not necessarily their products. I strive to provide them with the tools and knowledge they need to succeed both locally and globally. Even the absolute product we, the universities,  produce, in the form of knowledge, is not truly “Made in the USA” when you pause to consider the global supply chain of research and education.

This is not meant to discredit or undermine any business that claims to be “Made in the USA.” To the contrary, I hope we can explore and discover more ways that we can support locally owned businesses that craft American products. However, the real questions for me are

1. Where do you delineate local?
2. How do you define “Made in the USA?”
3. Will John Beck succeed as the starting quarterback for the Washington Redskins?

Please comment.

To you, the phrase “Made in U.S.A.” may denote quality, or pride in what this country can produce, or support for our economy at a time when the easy way to cut costs is to export manufacturing.

It’s great to realize how much of what is made in this country is made by family-owned businesses. FOBs account for 80% of all U.S. companies, produce 68% of all jobs, 50% of all wages. By way of giving credit where credit is long overdue, our organization aims to increase awareness of this backbone of the nation’s economy.

This website is a collaboration of the several dozen family-business education programs across the U.S.A. Most are in universities and create a safe-harbor learning community for family businesses of all sizes, growth stages, and industrial sectors. Here you’ll find links to the programs closest to you and your colleagues as well as links to excellent companies that have chosen to put their money where their mouths are and keep their production here at home.

The collegial association of family business education centers, institutes, and programs that conduct teaching, research, and outreach is known as the Family Business Alliance. We’re proud to supply you with artwork you can freely attach to your U.S.A.-made, family-business-made product or service. Feel free to print it as decals or incorporate it in your packaging design. It’s scalable, so you can modify its size. If you have any problems using this artwork, please email

This site is a work in progress, as the directors of dozens of family-business programs develop their thinking about how this site and its message can be made more useful and informative.

Take a moment and visit the website at: http://madeinusabyfamilybusiness.com/ and share your story.

David Aronoff is a General Partner at Flybridge Capital Partners whose investment interests include the semiconductor, internet & mobile infrastructure, data center, video and digital media sectors. Prior to joining Flybridge, David spent nearly a decade at Greylock Partners where he led several of the firm’s successful investments in the communications and systems markets. Previously, he held management roles at Chipcom, co-founded the Attitude Network (acquired by TheGlobe.com), and held technical positions at Bell Labs. David holds a BS in Computer Science from the University of Vermont, cum laude and with college honors, an MS in Computer Engineering from the University of Southern California, and an MBA with Distinction from Harvard Business School.

Tripp Blair is the President of RM Blair & Associates, a hi-tech consulting company engaged in providing marketing and sales expertise to start-up and early stage companies. His current areas of interest/expertise are software development for mobile devices, cloud computing and embedded software for consumer devices.
Tripp is a seasoned technology industry veteran with more than 25 years of operational experience and many successful exits.

Peter O’Connell moved to the investor side of the table in 2009 after 15 years as CEO of Public and Private companies. Focusing on profitable early stage and growing mid-caps, he helps companies achieve their operational and financial objectives. Current projects are in alternative energy, aerospace, computer hardware, industrials, and most recently fast-casual food. Peter is experienced raising capital with commercial
lenders, private equity, private placements and public markets.

• How to wisely handle an inheritance or other cash windfall.
• Selling a small business in Vermont.
• Help mom and dad tap into the available social services to get the assistance they need as they get older.

All panel discussions are free and open to the public. Come learn from local professionals on these important topics, and bring a friend!

Dann Van Der Vliet, Director of the VFBI, will be part of the October 27 panel on “Selling a small business in Vermont – Family and Management Issues.” Selling a business can involve intricate family and management issues. Experts will discuss how to work toward solutions benefiting both the family and the business, mistakes to avoid, best practices to make the transaction run smoothly, and incorporating business succession into your estate plan.

A PDF of the entire FIO forum is available below. For more information contact:

Connie Livingston: (802) 864-2978
Adam Bartsch: (802) 985-8811

FIO Forum Fall 2011 in PDF

• Small Business Person of the Year: For developing an outstanding, growing business; innovative product(s), increasing jobs,increasing sales, overcoming adversity, and community contributions.
• Small Business Exporter of the Year: Significantly increased export sales and profits, encouraging other firms to export, increased jobs through exports, and innovative methods of creating markets.
• SBA Young Entrepreneur of the Year: Owner will not reach 30th birthday by June 1, 2012, three-year evidence of success in sales and profits, increased jobs, innovative products, demonstrated potential.
• Entrepreneurial Success: Business that started ‘small’ by SBA standards, then developed into a large business. Business must have received SBA assistance.
• Jeffrey Butland Family Owned Small Business: A family-owned business that has passed from one generation to another and ownerhas responsibility for operating the business with at least a 15-year track record
• Vermont Micro-Enterprise: For developing an outstanding business with assistance through SBA loan programs or as a client of oneof our SBA technical service providers, at least a three-year track record, and 5 or fewer employees.

Beauregard Equipment of Colchester, a charter member f the Vermont Family Business Initiative was the 2007 Vermont and New England Family Business of the Year.

Attached is a nomination form with award categories and easy completion instructions. Should you have any questions or need assistance with your nomination, please contact the SBA Vermont District Office at 802-828-4422.

SBA NOMINATION FORM 2012

Yet, there are a growing number of choices to continually challenge yourself, grow your network and never stop learning. The only question is, what do you want to learn? Some may choose to focus on family business related issues, in which case, consider joining a family business center, typically affiliated with a state university or school. Here in Vermont, of course, is the Vermont Family Business Initiative (http://uvm.edu/familybusiness), but there are over 50 of these centers throughout the United States and Canada. for a complete list, go to: http://www.familyenterpriseusa.org/?page=UniversityResources.

There are high-end intensive programs affiliated with Harvard, Northwestern or Loyola. Kennesaw State has recently launched an Executive MBA program specifically for Families in Business. Many of these are tailored to the class and feature relevant case studies coupled with readily applicable exercises.

Closer to home, executive education programs at the University of Vermont are more targeted at management and leadership principals, and Leadership Champlain is a nine-month immersion in community based leadership and networking.  The more intimate affinity groups offered through the Vermont Family Business Initiative for both CEO’s and Next Gen leaders offer a custom fit which is a mix of education, consulting and peer-to-peer coaching.

Regardless of your interest or need, do your research, ask many questions, and find someone who has been through the program or is currently enrolled. While you may be able to afford whichever program you enroll in, you will never be able to replace the time lost if your needs are not met.

Why is continual learning so important?

• Taking time to educate yourself and family about the particular issues that face your business will lead to more informed decisions.
• The landscape of business is continually changing; therefore it is imperative for leaders to stay ahead of shifts in practices and technology.
• Building network – Network is critical to long term success of any individual.
• Learning together builds family unity and assists with improved communication.

Why do some families resist additional learning opportunities?

• Privacy – Families are reluctant to “air their dirty laundry” in a classroom or forum setting, and often feel they may be exposing a company weakness by attending a program on conflict or financial security, etc.
• Time – Taking time to invest in yourself often takes time away from the office and work place.
• Cost – Some programs can range up to nearly $40,000, however, most are based on a per course fee or annual tuition. The State of Vermont helps to offset myriad trainings through the Vermont Training Program.
• Already have an education – There is a belief that college should have prepared you for everything.

Where to begin?

Family business classes:

• UVM offers a “Leading and Managing the Family and Closely Held Business” course that is open to both college students (credit) and early stage professionals (non-credit). The fall 2011 course starts on September 2 and runs each Friday through the semester.

Family business peer groups:

• For either the CEO/owner of Next Gen member in a business, these peer groups offer custom designed learning opportunities from both local experts and your business peers. (click here to lean more)

Executive education:

• UVM offers a “Professional Certificate in Leadership and Management” which is built on the core MBA subjects of finance, marketing, strategy and leadership.
• Many intensive programs exist that specialize in certain areas of family business:
• Harvard – Families in Business
• University of Southern Maine – Governance
• Stetson University – Transitions Conference

Community based leadership:

• Leadership Champlain offers a nine month community based leadership program that is excellent at understanding the socio-political aspects of leadership and decision making.

Some relevant stats:

• The Family Firm Institute (FFI) lists 182 schools offering family business courses, including 2 dozen targeted executive education programs throughout the world.
• The Five Phases of Family Business Education (Schuman & Ward 2009):

1. Education for future employees and managers.

2. Education for sibling team effectiveness.

3. Education for governors and owners.

4. Education for inheritance.

5. Education for life.

For a video link to this tip, please go to: http://www.wcax.com/story/15327874/businesses-adapt-to-technological-change

On August 29, 2011, the entire state of Vermont was declared a federal disaster area by President Obama based on the damage caused by Hurricane Irene. Attached is some detailed information that ay be of assistance to you.

For more details, contact your GFC advisor either at (802) 863-1331 in South Burlington, VT or at (603) 643-0043 in Hanover, NH with any questions.

Follow this link to the PDF fact sheet: Tax Alert #29 Hurricane Irene 2011

Among those reasons cited for not taking a vacation:

• Staff reduced due to economy. Cannot leave work at this time.
• Summer is the busiest time of the year and I would prefer to be here. I take my vacation in the Fall or Winter.
• I’m in construction, we make hay while the sun shines. Especially after the past couple slow years
• We take very few vacations, occasionally in the spring we may go to Florida to visit my wife’s brother, otherwise we are home bodies!

Why is taking time away from work important?

• Taking time away from work helps to separate family issues from business issues.
• Time away from work allows others (family members and employees) to feel empowered and trusted.
• Vacation time should not be seen as a reward for work completed but a recharging for work (and success) to come.
• It is estimated that 70-90% of doctor’s visits are stress related and that stress costs the nation more than $300 billion each year. In fact, research shows that those who can’t reduce their stress levels. Take time off, or calm themselves are also those more likely to suffer long term effects from a trauma. They can’t snap back as quickly as those who can ‘calm themselves’ and manage their stress.

Why do some families resist taking time away from work?

• Owners’ leading concern about taking vacation? By a narrow margin, 33 percent worry an important customer or client will not get good service. That beats 27 percent, who worry they will miss an important new business opportunity, says the AmEx report.There may exist a lack of trust with employees; it’s like leaving your baby with a sitter for the first time.
• Economy – times are tight, fear of backlash or sending the wrong signal to employees.

What does taking time away from work look like?

Family meetings and retreats:

• Scheduling family meetings outside of the office or even state. Scheduled meeting time with a set agenda and forum for discussing issue, but also down time to still enjoy each other as family.
• For college age students, summer time is the perfect time to work in other businesses, explore summer internships and develop new skills.

For vacations:

• Plan time away ahead of time; prepare employees and family members. Define rules of contact in the event of an emergency.
• Disconnect yourself. As tempting as it may be to “stay connected” with today’s technology.
• Entrust the people you put in charge to do what you expect of them.
• Build up to more time away: It can be an exercise in succession planning to gradually take more and more time away from the office.
• Have discipline to stay on vacation while on vacation. Do not over plan your time away, but have enough to keep you occupied and your mind off of work.

Some relevant stats:

• A recent survey of Vermont business owners found that 38% do not plan to take a vacation this summer, opting instead for either winter breaks or long weekends.
• Busy work schedules (37 %) and affordability (29 %) affect some owners’ hesitancy to take a vacation this summer.
• Entrepreneurs are less plugged in than they were in 2008, but 68 % still check in every day while on vacation, and 18 percent say they check in several times a day.
• Rising gasoline costs will affect half of small business owners’ vacation plans, keeping them closer to home or staying home altogether.
• The uncertain economy is affecting 57 % of small business owners’ vacation plans. Still, 46 percent of small business owners surveyed say they will take a summer vacation this year.

For a video link to this tip, please go to: http://www.wcax.com/story/15160451/family-business-taking-time-away-from-work.

Every family or privately owned business will need to answer this question: “How will this company endure after the current owner departs?” With a family owned business, that may be a passing of the torch to one in the next generation, a non-family CEO, or other scenario which involves some form of leadership succession. With a privately owned company, perhaps a strategic sale or employee ownership transaction. Regardless, preparing for that event takes time, people and expertise.

Remarkably however, an orderly succession is rarely the case. In nearly half (47.7%) of all FOB collapses, the failure of the business was precipitated by the founder’s death, or in 29.8% of the cases, the owner’s unexpected death. Only in relatively few instances (16.4%), did the business failure follow an orderly transition, and in situations where the owner was forced to retire, the figure drops to 6.1% (University of Connecticut Family Business Program, 2009).

Why is developing your future leaders important?

• Leaders must be prepared and qualified to take over the helm.
• Respect is earned through time and demonstration of abilities.
• The desired plan may not always coincide with reality:
• Death or disability may necessitate a hasty change.
• The “ideal” family member may not be available or ready to take over leadership.
• Today’s leadership landscape has changed:
• Pull, not push leadership.
• It is about sharing information, not controlling it.
• Constant innovation is critical to the success of many family businesses.

What are important leadership characteristics?

• An independent vision and goals, coupled with a keen history of the business.
• Develop new products, services, relationships, organizations, and channels.
• Manage complex relationships between the organization and its network of stakeholders.
• Decision making
• Risk taking

Why do some families resist identifying who the leader will be?

• Assigning roles or picking a leader my result in conflict or hurt feelings.
• Current leader is not prepared to let go.
• Lack of company support
• Legacy is a double edged sword:
• Previous generation embodies it
• Younger generation often feels saddles with legacy.

Where to start developing leaders?

• Assessment:
• Is there a passion for the business?
• Is there a good alignment of skills?
• Does he/she fit?
• Education:
• Some programs are now specializing in Family Business studies both at undergrad and grad level.
• UVM teaches a course in “Leading and Managing the Family Owned Business”
• Professional programs also exist such as the “Certificate in Management and Leadership at UVM.
• Experience:
• Outside experience will help develop skills and network, as well as respect
• Internship at another family business
• Develop within the business prior to assuming management or leadership positions.
• Peer groups, mentors and coaching
• Peer groups are an effective tool to develop leaders and create a strong support network.
• Mentors, both outside the business and inside the business
• Coaches can help developing leaders establish their priorities and decision making abilities.
• Non-family directors or Boards of Advisors
• Non-family executives can provide a bridge to future family leadership and instill professional benchmarks.
• Provide a nonbiased view on who is best fit to take over leadership.

Some relevant stats related to developing your future leaders:

• Integrity and commitment are the two most important attributes considered by senior generation members for next generation leaders. The ability to garner respect is a close third. (Chrisman, Jh., Chua, J.J. & Sharma, P. 1998).
• The average life span of a family-owned business is 24 years (familybusinesscenter.com, 2010). About 40% of U.S. family-owned businesses turn into second-generation businesses, approximately 13% are passed down successfully to a third generation, and 3% to a forth or beyond (Businessweek.com, 2010).
• Currently, 24 percent of family businesses are led by a female CEO or President, and 31.3 percent of family businesses surveyed indicate that the next successor is a female. Nearly 60 percent of all family owned businesses have women in top management team positions (Mass Mutual American Family Business Survey, 2007). Of the non-family firms in the Fortune 1000, only 2.5 percent are currently led by women (Fortune magazine, 2007).
• Between 10% and 15% of U.S. family firms are now managed by non-family executives (Barclays Wealth and The Economist Intelligence Unit, 2009).

For a video link of this tip, please go to: http://www.wcax.com/story/15007665/family-business-developing-future-business-leader.