Debunking Myths About Mom and Pop Shops (INFOGRAPHIC)

Family Business Statistics

Mom-and-pop shops still make up a large portion of retail small businesses.

But one of the biggest myths about mom-and-pops is that they’re almost always run by the pops, not the moms.

Not so, according to new data from Constant Contact (NASDAQ:CTCT).

Family Business Statistics

In recognition of National Mom and Pop Business Owners Day, on March 29, Constant Contact gathered data and compiled an infographic on the most common misconceptions related to small, family-owned businesses, the hub of American consumer culture.

Myth: Women Leaders are Absent from Family-run Businesses

One of the most striking myths highlighted by the mom-and-pop shops infographic is the somewhat erroneous surmise that small, family businesses have fewer female leaders running the business than in non-family organizations.

In reality, a larger number of women lead family businesses compared to non-family companies. In fact, 24 percent of family-ran businesses have a woman CEO, while just 15 percent of total companies have a female business leader.

Female entrepreneurs have played a vital role in fueling economic growth in America. Research shows that during the last nine years, businesses owned by women have increased at a rate of five times the national average, generating a staggering $1.6 trillion in revenue.

With a higher number of women running family-owned businesses, Mom entrepreneurs are a force to be reckoned with in pop shops and other family businesses, essential components of America’s economy and heritage.

Which brings us on to another highlight of the Family Business infographic. One common myth surrounding family-owned business ventures is that they are not essential for economic growth. Wrong again! By contrast, family businesses account for 78% of new jobs created in America and a whopping 64% of GPD.

With the truth about some of the most prevalent family businesses myths uncovered, small family-run businesses should not only appoint the female entrepreneur in the family with pride, but they should take great comfort in knowing their business venture is an imperative feature of America’s economic growth and commercial prosperity.

Check out more interesting family business data on the Constant Contact infographic below.

Family Business Statistics - Infographic

Family Business Photo via Shutterstock


Gabrielle Pickard-Whitehead Gabrielle Pickard-Whitehead is a staff writer for Small Business Trends based in the United Kingdom. Since 2006, Gabrielle has been writing articles, blogs and news pieces for a diverse range of publications and sites. You can read "Gabrielle’s blog here.".

2 Reactions
  1. Wow. That will make us look at these mom and pop shops differently. I guess the myths are just based on assumptions. They don’t know that they are doing more for the community.

  2. Love the article! I have supported this as a theory for a while, and thank you for your diligence to research! I have another theory about this as well, trends. I have seen an increase in the “Old Town” draw. Lot’s of families visiting and shopping in the “Old Town” cities in each of the areas I have lived or visited. What’s popular in these cities? Well, Mom and Pop shops of course. The Draw to big box stores is being challenged by online ordering and pricing. As these chains struggle to keep pricing down and compete, they have started announcing major restructure of closures of large numbers of store. HH Gregg is a good example closing all of its stores here in MD and VA, in a recent announcement that was not disclosed to employees prior. The draw to personal service and building that relationship with those running mom and pop stores is real! I am a believer that as a society we missed that interaction and are trending in an increase in mom and pop support!