Family-owned companies in Mexico, Brazil, and Chile significantly influence Latin America, contributing 60% to the GDP and driving job creation, as EY and the University of St. Gallen’s 2023 report show.
In Brazil, the leading 10 family businesses generated over $245.9 billion. Mexico’s top 10 family firms brought in $137 billion, while Chile’s leading six amassed $74.2 billion.
The Family Business Index, updated every two years since 2015, emphasizes the importance of Brazilian family businesses in Latin America, featuring the 500 largest globally.
These top 500 family businesses could form the world’s third-largest economy, behind only the U.S. and China.
Wal-Mart Inc., Berkshire Hathaway, and Cargill lead in revenue, collectively employing 24.5 million people and generating $8.02 trillion worldwide.
Nearly half of the index’s family businesses are in Europe, with 30% in North America and 16% in Asia-Pacific.
“Family businesses are pivotal to national economies, propelling both economies and societies forward,” said Jorge Oscar Piñeiro Tamburrini of Ernst & Young Colombia.
In Latin America, Brazil’s JBS S.A. and Mexico‘s América Móvil lead in revenue, followed by Argentina’s Grupo Techint and Chile’s AntarChile S.A., among others.
Family Enterprises: Driving Economic Growth
Family enterprises constitute 75% of Latin America’s companies, exceeding $1 billion, according to INSEAD.
Globally, these firms represent up to 85% of all businesses, significantly impacting GDP and employment.
The largest family businesses globally surpass the growth of both advanced and emerging economies, acting as a global economic engine.
These companies, which are significant employers across industries, contribute to economic stability and growth.
Despite family involvement, public listings enable capital accumulation, supporting large projects and innovation in family enterprises.
This approach enhances private-public partnerships, benefiting societies.
Among the top 500, 19% feature a board member under 40, women hold 23% of board positions, 66% are older than 50 years, and 30.8% have existed for over a century.