When the family business is a legacy

The family business has long been a staple in the American economy. According to Score, a nonprofit organization and resource partner of the Small Business Administration, 19 percent of the 28.8 million small businesses in America are family owned. Ranging in size from small “mom and pop” shops to Fortune 500 entities, family businesses generate about 64 percent of the country’s gross domestic product and 78 percent of all new jobs. And a whopping 74 percent of family-owned firms report stronger values and culture.

Legatus members are at the helm of some of these companies – incorporating their Catholic faith and values to lead these successful enterprises into the future. And some have been handed down within the family for generations going back more than a century. 

LET THERE BE MUSIC

Historically speaking, most family-owned businesses don’t survive past the second generation. Not so for the Gretsch Company in Savannah, GA, which celebrates its 140th anniversary in the musical instrument business this year. The company presently is led by president Fred Gretsch and his wife, Dinah, who serves at the company’s CFO. Both are founding members of Legatus’ Savannah Chapter.

Gretsch Company was originally founded in Brooklyn, NY, in 1883 by Fred’s great-grandfather, Friedrich Gretsch, then a 27-year-old German immigrant, who made handcrafted banjos, drums, and tambourines. Within 40 years, Gretsch was the largest manufacturer of musical instruments in the United States. As years passed, the company introduced innovations in the design of drums, began selling branded guitars, and entered a creative partnership with country music star Chet Atkins. When the Beatles made their iconic appearance on The Ed Sullivan Show, George Harrison played a Gretsch “Country Gentleman” guitar, which helped spike guitar sales to an all-time high.

Fred Gretsch Jr., grandson of the founder, sold the company and brand to Baldwin Piano in 1967. But Dinah Gretsch, who began working for Gretsch while it was a Baldwin subsidiary, helped restore the family connection until her husband, Fred, could buy back the company in 1984.

As the fourth generation in charge, Fred and Dinah proudly share their love of “all things music” with the community. “We love being able to give back to both the local and international communities,” Gretsch said. “We have a great respect for the Catholic community, and we’ve tried to help young people.”

As longtime supporters of music education, the Gretsch’s philanthropic endeavors have made a significant impact on organizations and individuals in their effort to “enrich people’s live though participation in music.” 

Through the Gretsch Family Foundation, Fred and Dinah regularly donate musical instruments to charity auctions, sponsor nonprofit organizations, and contribute funds for other initiatives. For example, the foundation supports Music for Mission, a program that forms Catholic musicians by establishing scholarships to help with the expense of musical training. 

Dinah established the Mrs. G’s Music Foundation, which has benefited thousands. In 2021, Georgia Southern University established the Fred and Dinah Gretsch School of Music after the couple pledged $3 million to the college along with their beloved collection of historic Gretsch drums, guitars, and archival materials. 

The Gretsch family also supports the Legionaries of Christ, which is striving to create a “resource church” in Vienna, Austria, called the John Paul II Center. “This is a key initiative of the Gretsch Family, all the more so since Fred lived in Vienna in 1959 and went to school there,” Dinah said. 

Dinah indicated her partnership with Fred is a key to the Gretsch Company’s success.

“We’re both entrepreneur personalities,” she explained. “As Fred said, he works in one area of the business, and I work in another. We support each other. And I think that’s made us successful.” 

Fred believes the family business will continue to thrive. 

“There will always be music,” he said. “So, I think our business has one of the best chances to survive.”

A SOLID TRADITION

The Nix Companies, a diversified commercial and industrial metal services company in Poseyville, IN, was founded in 1902 by Charles Nix, who immigrated to the U.S. in his late teens. He worked on a farm in southern Illinois before establishing a blacksmith shop and eventually moving to Poseyville to start his company. 

“We have been an uninterrupted business in the same small town ever since,” said Matthew Nix, president and CEO and fifth-generation family member who works alongside his brother, Adam Nix, vice president of operations. Matthew’s wife, Lindsey, is director of training and public relations. Matthew and Lindsey are members of Legatus’ Evansville Chapter.

Matthew’s recently retired father, Bill Nix, previously served as the company’s president, while Lindsey’s semi-retired father, Don Tenbarge, works part-time as a delivery driver and groundskeeper. 

“Tradition and loyalty are both important to us,” said Matthew. “Our history has become a large part of our brand, and managing the business for longevity and to leave the business to the next generation stronger than we found it is important factor in the way we manage the business.”

All five generations of the Nix family have been practicing Catholics and members of St. Francis Xavier in Poseyville, a town of 967 people. 

“My brother and I have moved outside of town, so we belong to neighboring parishes now, but our home parish is still an important part of who we are,” Nix said. “Recently, our grandfather’s funeral was there. He received every sacrament there, including marriage and his funeral. He built the entrance to the cemetery where he is buried.”

Incorporating the family’s Catholic identity and shared values is a core staple of how the Nix family runs its 121-year-old company. 

“Strategies and tactics in business must be ever-changing, but foundational principles and values shouldn’t change. It’s really that simple,” Matthew said. “If you are clear about your values, you can attract people who share those values and detract those who don’t.”

One facet of Matthew’s leadership strategy is to accentuate the positive rather than focus on negative issues. “As Jesus tell us, ‘If you light a candle, you don’t put it under a basket, you put it on stand for all to see,’” he said.

Matthew supports employees and families with affirmation. For example, he gives married team members wedding anniversary cards thanking them for their example of commitment to marriage and family. The company also has produced a documentary video series, The Life of a Craftsman, that provides a glimpse into some of its employees’ life outside the workplace and shines a light on their images as strong husbands, fathers, coaches, church volunteers, and other exemplary pursuits.

“It also showcases the trades and how making an honest day’s living with your hands is a noble career path,” said Matthew. 

He pointed out that family-operated businesses tend to think longer-term, and team members tend to connect better with family owners and operators. 

“I think of the Scripture passage, ‘I know my sheep, and my sheep know me.’ When Lindsey travels around to our various locations, it matters to our team,” Matthew said. “If they don’t see her for a while, she hears about it. They know we care about them, and therefore they care about their place of work.”

STRONGER TOGETHER

Bruce Barron, a member of the Detroit Northeast Chapter and CEO and president of Barron Industries, represents the third generation at the helm of the family-owned metal casting business founded in 1923. Bruce’s two siblings — Greg Barron, vice president for quality and engineering, and Don Barron, manager of subcontract and logistics — work alongside him as the company enters its second century. 

“The 100-year mark makes me think of my grandfather, father, three uncles, brothers, and sister, but also the thousands of employees that I have known in my 40 years with the company and what an honor it is to work with so many great folks,” Bruce said. “We will continue to focus on a culture of family, but also on innovation and implementation of technology to keep us competitive.”

The Catholic faith plays a dominant role in the Barron business. For example, they embrace incorporating symbols of the Catholic faith in the company’s facility, including a full-size statue of the Blessed Mother in the lobby along with various other Catholic images and statues. They also have had priest friends celebrate Mass in the conference room at noon and had staff from neighboring companies attend as well.

To maintain family values during changing societal times, Bruce said he just makes company decisions and tries to be an example of what it means to be a family – to show respect and treat others as he would like to be treated. 

“Family-owned business is unique because you can have policy features that are in line with your family values. Large corporations or public corporations are so black-and-white that it’s difficult to attend to individual employee’s needs,” Bruce said.

When your name is on the building, he added, “You are held to a very high level of expectation in performance and ethics in standing within the community. So, we all work hard to live up to those expectations.”

The Barron family also strives to have a faith presence in various aspects of their day-to-day activities – offering prayers and blessings for their employees at the plant.

“We do this without it being pushed on anyone, and we’ve never had any complaints,” Bruce said. 

As a member of Legatus, “I am committed to be an ambassador of faith,” Bruce affirmed. “As long as I am at the helm of the company, I am committed to live my faith inside and outside of the business.”