By DeAndre Malone, Jr., North Central Regional Center for Rural Development
Introduction
Starting a business is an exciting venture that often involves a range of decisions, from operational roles to financial strategies. Among the many forms of business ownership, the “couple business” model has gained attention due to its unique structure and growing prevalence.
While couple businesses have long existed, they were historically informal and often excluded from academic discourse, particularly due to the invisible nature of women’s contributions within family firms (Danes & Olson, 2003; Ahl, 2006). As gender roles and household labor patterns evolved, particularly in the late 20th century, these businesses emerged from the shadows to become an increasingly visible organizational form (Fitzgerald & Muske, 2002). Today, couple businesses are recognized as a significant segment of the small business landscape, defined by their distinct blend of family and enterprise, shared leadership, mutual financial stakes, and intertwined personal and professional dynamics. Recent studies have documented the rise in the number of couple businesses (Smith, 2000; Venter et al., 2012; El Shoubaki et al., 2021), highlighting the importance of examining this model empirically to better understand how it shapes both business and personal outcomes.
According to data from the Annual Business Survey, 10.3% of small businesses[1] (employing at least one individual) are jointly owned and equally operated by spouses (U.S. Census Bureau, 2021).
The concept of a “couple business” is defined and understood differently across various academic fields. To provide clarity, we adopted the definition and criteria established by El Shoubaki, Block, and Lasch (2021), who delineate the specific attributes that characterize the couple business structure in our study:
- The couple must be married, or cohabitating, and can be either mixed, or single gender.
- Both partners can co-own the business OR be actively involved in the management of the business.
- They both have a sense of (psychological) ownership of the business. Family businesses may or may not also be couple businesses.
Using data from the NCR-Stat: Small Business Survey (Wiatt et al., 2024), this report analyzes the demographic and business characteristics of couple businesses in the North Central Region. It also compares their distributional patterns and proportions to those of other small businesses in the survey, permitting readers to understand how couple businesses fare across key indicators of business structure.
IDENTIFYING COUPLE BUSINESSES IN THE SURVEY
Out of 1,287 respondents in the survey, we identified that 461 (35%) businesses in the North Central Region met the criteria for a couple business. These 461 respondents reported being married or living with a partner and indicated that at least one of the following activities was equally shared between them and their spouse or partner: daily business operations, short-term managerial decisions and long-term managerial decisions, or decisions regarding profit utilization. Additionally, respondents whose spouses held a 50% or greater share of the business also met the criteria. Figure 1 below provides a detailed breakdown of the criteria each couple business met.
Figure 1. Breakdown of the proportion of criteria met for couple business classification (n = 461)
Source: NCR-Stat: Small Business Survey
(Figure 1). Most respondents met the criteria for day-to-day management (64%) and profit utilization decisions (58%), indicating that these responsibilities were more widely shared among couple business structures. In contrast, daily managerial decisions were overwhelmingly not a shared responsibility, with only 38% of businesses meeting the criteria. The distribution of long-term managerial decisions was more balanced, with 48% of businesses meeting this criterion and 52% not. Similarly, spouse ownership was split, with 44% of couple businesses meeting and 56% not meeting the criteria.
DEMOGRAPHICS
Couple Business Prevalence in the North Central Region:
We provide a visual representation of the distribution of couple-owned businesses in the North Central Region using a choropleth map. In this map, darker shades indicate states with the highest percentages of couple businesses relative to the state’s total surveyed small businesses. Lighter shades represent states with the lowest percentages. Sample sizes ranged from 102 to 110 businesses per state (Figure 2).
Figure 2. Percentage of couple businesses among total businesses by state in the North Central Region (n = 1,287)
Source: NCR-Stat: Small Business Survey
South Dakota has the highest share of couple-owned businesses, followed closely by Nebraska and North Dakota. States such as Wisconsin, Kansas, Missouri, Ohio and Iowa fall into the mid-range of couple business prevalence. Michigan has the lowest percentage of couple businesses, followed by Minnesota and Indiana.
Business Owner’s Race:
We examined the race of the couple business owners. Respondents identifying with multiple racial identities were placed into the “Multiple Race” category, where 5% couple-business owners identified themselves as such. Further, 10% identified as Black or African American, 4% American Indian or Native Alaskan, 3% Asian, 2% Other, less than 1% Pacific Islander or Native Hawaiian, and the remaining 75% as White (Figure 3).
Figure 3. Percentages of couple businesses by respondents’ race (n = 461)
Source: NCR-Stat: Small Business Survey
BUSINESS CHARACTERISTICS
Business Size:
Respondents were asked to report the number of employees they currently employ. We found that across all businesses in the sample, approximately 80% reported employing between 0 and 10 individuals. An additional 11% had between 11 and 50 employees, 3% had between 51 and 100 employees, and 6% employed over 100 people.
When comparing couple businesses (n=461) with other businesses in the survey (n=826), a few clear differences in employee size emerge. Other businesses more frequently reported having no employees (28%) or only one employee (21%) compared to couple businesses (18% and 16%, respectively). This suggests that a greater proportion of other businesses operate without hired help or with minimal staffing compared to couple-run businesses. We found no large differences in the share of couple and other businesses with 3 to 100 employees.
Among businesses employing above 100 individuals, couple businesses notably had a higher share at 12% (n=461) compared to just 2% (n=826) of other businesses. This disproportionate representation is somewhat unexpected given the traditional view of couple businesses as intimate, family-integrated operations, that are often oriented toward lifestyle goals or modest growth. These findings indicate that a number of couple businesses are scaling beyond traditional expectations and challenging conventional assumptions about their growth potential and structural limitations (Figure 4).
Figure 4. Shares of couple and other businesses by number of employees in the North Central Region (couple business n=461; other businesses n=826)
Source: NCR-Stat: Small Business Survey
Business Sales:
Figure 5 below shows the distribution of business income for couple-owned businesses and other businesses in the sample.
The distribution of business income for couple-owned businesses appears to be more evenly spread out across income levels compared to other businesses. Other businesses appear to have greater concentrations in the lower income ranges (between $0 and $49,999) while couple businesses seemingly have greater concentrations in the higher income ranges (150,000 and above). Interestingly, couple businesses also have a higher proportion of million-dollar businesses than the other businesses (18% to 13%).
Figure 5. A comparison of gross business income (pre-tax) between couple and other forms of businesses in 2022 (n=1,225)
Source: NCR-Stat: Small Business Survey
Business Age:
We used the number of years a business has been in operation as a measure of longevity to compare between couple businesses and other businesses. The average age (mean) of couple businesses was 19.32 years, with a standard deviation of 22.08 (n=460; 1 respondent left this question blank). The standard deviation tells us how the ages of the businesses are spread out. In this case, couple businesses varied widely in age. Half of the couple-owned businesses have been operating for less than 11 years (median), and a similar portion for more than 11 years. Remarkably, 10% of couple businesses had been operating for over 50 years, and 3% had existed for over 100 years.
In comparison, other businesses had an average age of 15.10 years and a standard deviation of 18.57 (n=824; 2 respondents left this question blank). Half of these businesses were older than 8.5 years (median). Among them, 5% had been operating for over 50 years, and 2% for over 100 years.
According to Gene Marks (2005), the average lifespan of a small business is about 8.5 years. Interestingly, 50% of other businesses in our sample meet this benchmark exactly. In contrast, 65% of couple businesses are older than 8.5 years, indicating that a larger portion of these businesses have already surpassed the commonly cited lifespan for small businesses. While we cannot predict whether younger businesses will ultimately exceed this threshold, the difference in distribution offers an indication of relatively longer lifespans among couple businesses compared to other businesses in our sample (Figure 6). This alignment is particularly noteworthy given the 20-year gap between Marks’s estimate and our survey.
Figure 6. Percentage of couple and other businesses by business age (n=1,284)
Source: NCR-Stat: Small Business Survey
Goal of Business:
Figure 7 (below) compares the business goals of couple and other businesses. Although there is a clear difference when comparing the two groups in terms of primary business objective proportions, the actual distribution of the business objectives is similar. Both couple businesses and non-couple businesses ranked these objectives in the same order; Positive Reputation with Customers (first), Profit (second), Business Survival (third), Keeping Business in the Family (fourth), and Opportunity to Work with Family (fifth).
Nevertheless, we found that couple businesses tend to prioritize family-based objectives more than other businesses, with 16% of couple businesses stating that either keeping the business in the family or the opportunity to work with family was a primary objective compared to just 6% for other businesses.
Figure 7. Percentage of businesses by primary business objective (n=1,285)
Source: NCR-Stat: Small Business Survey
PERSONAL WELL-BEING AND LIFE EVALUATION
Happiness:
Respondents were asked to share their general happiness on a scale ranging from 0 (extremely unhappy) to 10 (extremely happy). We found that other businesses had a greater proportion of respondents reporting average to lower happiness levels, while couple-owned businesses had a higher proportion reporting higher happiness levels. Ninety percent of couple businesses reported happiness levels between 6 to 10 points compared to 75% for other businesses (Figure 8).
Figure 8. Percentage of businesses by the level of the business owner happiness (n=1,287)
Source: NCR-Stat: Small Business Survey
FINANCIAL WELL-BEING AND EVALUATION
Financial Satisfaction:
Couple businesses reported higher levels of satisfaction with their personal financial situation compared to other businesses (Figure 9). When asked to rate their satisfaction on a scale from 0 (Not at all satisfied) to 10 (Extremely satisfied), fewer couple-owned businesses reported financial dissatisfaction and more expressed higher levels of financial satisfaction.
Only 4% of couple-owned businesses rated their financial satisfaction at 0, compared to 9% of other businesses. Additionally, 13% of couple businesses rated their satisfaction at 10, compared to 10% for other businesses. A larger proportion of couple businesses also rated their satisfaction between 7 and 9 (46%) versus other businesses (35%). In contrast, 44% of other businesses reported satisfaction levels of 5 or lower, compared to 32% of couple businesses. These findings suggest that couple businesses generally perceive their financial situation more positively than other businesses.
Figure 9. Percentage of businesses by the level of the business owner financial satisfaction (n=1,287)
Source: NCR-Stat: Small Business Survey
Self-Assessed Success:
Respondents were asked to assess their business success on a scale from 1 (Very Unsuccessful) to 5 (Very Successful). Results are shown in Figure 10 (below).
Most businesses in both groups considered themselves successful, with 27% of couple businesses and 19% of other businesses rating themselves as “Very Successful,” while 56% of couple businesses and 54% of other businesses rated themselves as “Somewhat Successful.” Notably, a higher percentage of other businesses (7%) rated their businesses as “Somewhat Unsuccessful,” compared to just 2% of couple businesses.
Figure 10. Percentage of couple and other businesses by self-assessed success (n=1,287)
Source: NCR-Stat: Small Business Survey
Self-Assessed Profitability:
Respondents were asked to assess their business profitability on a scale from 1 (Not at all Profitable) to 5 (Extremely Profitable). Results in Figure 11 suggest that while both groups share similar perceptions of moderate profitability, couple businesses report higher rates of strong profitability than other businesses, with more identifying as ‘Very Profitable’ (26% compared to 17%) and fewer as ‘Not at all Profitable’ (7% compared to 13%).
Figure 11. Percentage of couple and other businesses by self-assessed profitability (n=1,279)
Source: NCR-Stat: Small Business Survey
CONCLUSION
Couple businesses in the North Central Region share some demographic characteristics with other small businesses but also display important differences. Both groups have similarly aged owners and tend to operate in the same regional locations where owners reside. However, couple businesses are more concentrated in the northwestern portion of the region and are slightly more educated than other business owners (52% of couple business owners earned a 4-year degree or above compared to 49% for other business owners).
From a business perspective, couple businesses exhibit resilience, as evidenced by their longer average lifespans and favorable financial outcomes. When compared to other businesses in the survey, couple businesses tend to report greater satisfaction in both their personal lives and financial standing. Moreover, these couple businesses place greater importance on family-centered goals, such as keeping the business within the family and working alongside loved ones. Despite their smaller size, many couple businesses do well financially and report a more optimistic view of both their business success and personal well-being.
Ultimately, couple businesses in the North Central Region present an intriguing model that blends entrepreneurial ambition with deep emotional investment. These findings offer a meaningful snapshot of what that experience can entail: relatively strong financial outcomes, longer business lifespans, and higher levels of satisfaction. The snapshot can be beneficial for those starting a business with their partner, or already navigating one together, as well as community stakeholders, extension professionals, economic developers, and policymakers who want to support resilient, family-driven business models. Continued research can help us better understand what drives these outcomes and how couple businesses navigate the unique challenges and opportunities that come with building something—together.
Footnote
[1] Note: Data was downloaded from the U.S. Census tableau and interpreted by the author. This survey contains data from a sample of 300,000 firms and scaled to estimate a population size of 4.9 million firms.
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SUGGESTED CITATION
Malone, Jr., D. (2025, July). Partners in Business, Partners in Life: A Snapshot of Couple Businesses in the North Central Region. North Central Regional Center for Rural Development. https://doi.org/10.22004/ag.econ.359031