There are many metrics for success in family business, but here’s a big one: South Dakota ranks No. 2 in the nation for percentage of family businesses.

Almost 36 percent of all businesses in the state are family-owned, and more than 42 percent of workers are employed by family-owned businesses – one of the largest proportions among all states, according to annual research from OnDeck, which sourced data from the latest edition of the U.S. Census’ Annual Business Survey, which covers the 2022 reporting period.

Additionally, salaries at family-owned businesses in South Dakota rose from $42,342 in 2021 to $48,001 in 2022, one of the biggest increases nationwide. The change moved the state up 23 spots to rank 20th.

“South Dakota is an incredible state for family businesses, and we’re proud to see that reflected in this research,” said Stephanie Larscheid, executive director of the Prairie Family Business Association.

“It’s a strong foundation to begin from as we work with family businesses regularly around strategies that support their sustainability and multigenerational focus.”

As Larscheid prepares to step away from her role at the Prairie Family Business Association after almost a decade for a family move out of state, she’s reflecting on how the association has evolved and is optimistic about its future.

“There always are unique challenges for family businesses leaders, but I truly believe there also have never been as many resources readily available to help them,” she said. “The team at PFBA – our staff, our board and our partners — are so committed to connecting families with the tools they need to succeed.”

Since Larscheid became executive director in October 2015, the Prairie Family Business Association has welcomed more than 100 new businesses into membership and expanded its reach across the region. As she prepares to transition from her role in 2026, Larscheid reflects on a decade of innovation and impact — and what’s next for PFBA.

“PFBA has a tremendous team in place with Callie Tuschen as office manager, Mason Van Essen as assistant director and Kim Erickson as business development manager,” she said.

“The PFBA advisory board consisting of family business owners is extremely supportive of the PFBA team and our mission of helping family businesses thrive through generations. The future is bright for PFBA and family businesses in the future!”

We sat down with her to look back on her leadership and look ahead to what’s next for PFBA.

What stands out to you as the Prairie Family Business Association’s greatest accomplishments in the past 10 years?

The innovative programming we’ve created for family business leaders has made a tangible difference in helping these family businesses thrive through generations. Over the past 10 years, we’ve deepened programs and diversified offerings.

Board School has become a cornerstone program, equipping family members and key nonfamily leaders with the knowledge to govern effectively. Affinity Peer Groups have grown significantly, with PFBA currently administering 26 groups. Deeper connections have been formed, and shared learning among peer members has been enhanced, directly impacting individuals, families and businesses.

The Family Business Retreat continues to be PFBA’s signature experience. We encourage every family to attend at least once. It can profoundly impact your business and family now and for generations to come. I sat down with a family recently, and they attributed their substantial growth and successful generational transition directly to attending the 2021 retreat. That’s the kind of transformation we exist to facilitate.

What are some of the biggest changes you’ve seen in the family business landscape in your time as executive director, and how has PFBA mobilized to address them?

We have legacy families in our membership who have been with us since our founding 34 years ago. For some of these families, we’re now serving their third generation. Leadership development in the next generation has become a top priority. Helping emerging leaders understand what it means to be both an effective owner and an effective leader has been a major focus of our programming.

At the same time, transitioning leadership remains one of the greatest challenges. As one of our advisers wisely says, you need to have something to retire to, not something to retire from. I often challenge current leaders to ask themselves: What are you retiring to? What conversations are you avoiding? What story are you telling yourself about the next generation? As one of our keynote speakers, AmyK, reminds us — start with, ‘I have a story in my head, and I’m not sure if it’s true, but let’s talk about it.’ That openness changes everything.

What would you like to say to family businesses who still have not discovered all that PFBA has to offer?

Take the opportunity in front of you. If you’re willing to step back and work on your business rather than in it, PFBA is for you. You’ll see growth, stronger operations, better communication among family members — and your life will be changed for the better. The investment of time and resources is absolutely worth it.

What message do you think is most critical to deliver to PFBA’s collective business community as family businesses prepare for their future? What will it take to ensure their continued sustainability?

Families who are willing to do the hard work — to align purpose, communicate honestly and invest in structure — will build lasting success. Too often, families that haven’t united around a shared purpose are tempted by a buyout or acquisition offer, believing it will solve their challenges.

But as one of our late family businesses leaders said so wisely: If you take the big check, what changes? Will your family get along better? Will your days feel more meaningful? Likely not.

Hire a third-party facilitator to lead your family meetings. It will be life-changing and worth every dollar. PFBA can connect you with qualified, recommended facilitators. Reach out to fba@usd.edu.

What are the next steps as PFBA chooses a new leader?

The search for PFBA’s next executive director is underway, led by a committee of four family business owners and Dr. Klaus Beckmann, interim dean of the USD Beacom School of Business. Those interested in the position can contact Tom Iverson at Sagency at tom.iverson@sagencytalent.com or 701-388-3999.

PFBA continues to operate under the Entrepreneurial Operating System, EOS, with strong momentum toward achieving strategic goals aligned with our mission to help family businesses thrive through generations.

What’s next for you? Are you hoping to stay connected to working with family businesses?

As our family moves to Athens, Ohio, for my husband’s position at Ohio University, I’ll remain with PFBA part time until May 2026 to support a smooth leadership transition. There have only been a handful of executive directors in PFBA’s 34-year history. That longevity speaks to how meaningful this work is. Working with family businesses has been the honor of my career, and I hope to remain close to the family business field. I look forward to onboarding the next person who is fortunate enough to call this role their job.