Recently ISYS Solutions, Inc. Founder and Chairman, Chris Loumakis, contributed to an article published in the Orange County Business Journal (OCBJ) (May 9, 2022 issue). The OC Leader Board article on “Why Congress is Choking Family Businesses” discussed the economic challenges family businesses have faced since the pandemic and the lack of recognition family businesses get for contributing to local communities and local and broader economies. The article discusses tax policies regulated by Congress, such as the death tax, that disproportionately impact family businesses, and asked local family business leaders, including ISYS, to share their feedback. Labor shortages, increased government regulation, and higher taxes were all noted by family business leaders as being the areas of highest concern/risk in the post-pandemic climate.
Below are some excerpts from the article published. (Source: https://www.ocbj.com/news/weekly-news/oc-leader-board-118/ )
- Family businesses tend to be long-term employers, with over 74% in business 30-plus years and 33.5% grossing over $50 million a year. In addition, 44% pay above average wages and nearly 80% added jobs during the last pandemic year.
- If you ask these owners what their main worries are, 27% say a recession or market downturn keeps them up at night. The one thing owners say they cannot handle (14%) is more negative government regulation. No amount of hard work or strategic planning can stop that, specifically unfair tax penalties that force them to consider selling their business outright.
- “Two huge economic emergencies caused by the liquidity crisis of 2008-2009 and the COVID pandemic of 2020-2021 provided a one-two punch to many small and midsized family businesses,” said Chris Loumakis, founder and chairman of Brea-based ISYS Solutions Inc., a family-owned company that provides nurse care management and related services in workers’ compensation cases.
- “These externally generated economic calamities and many of our government’s regulatory responses to them have pushed many of these businesses into bankruptcy and critically crippled others,” Loumakis said.
- New worries are the availability of labor, with nearly 23% stating this as main risk, and inflation. Inflation barely registered in last year’s survey, but this year over 11% say this keeps them up at night.
- Despite the headwinds, improving post pandemic market conditions and good planning have 89% of family businesses saying their business will grow this year, which is great news.
In addition to speaking out and sharing insights and experiences on behalf of family businesses, ISYS is a member of Family Enterprise USA (https://familyenterpriseusa.com/ ) , a nonprofit organization that advocates at the federal level for family businesses and educates on the benefits these businesses provide to the generations of people and communities they serve. Our ISYS President serves on the Board of this organization.