As many of you know, my grandparents on both sides were Amish. So I have deep family roots in that culture. Every time we visit family and friends in Holmes County Ohio, I find myself fascinated by the quantity of businesses operating in that strong Amish area. We watch 18-wheelers turn down tiny gravel roads to get to the various businesses tucked among the back roads. The diminishing number of people directly involved in agriculture has affected even this agrarian group. Reports indicate that in this community, more than half the Amish have left the farms to work in small businesses. According to commerce information, there are about 1,000 Amish microenterprises in this area. Many of these boast annual sales of more than $500,000. Yes, employees are making buggies, harnesses and lumber, but also furniture, modern cabinets, garage doors and cheese. Restaurants, hotels, fitness centers and tourists sites are flourishing.
This is significant because of the trend toward small businesses and home-based businesses in the general population. Yet, while the national failure rate for small businesses is listed as about 85% in the first 5 years, for these Amish businesses, the failure rate is less than 5%.
How is it possible that these Amish entrepreneurs, despite having only eighth-grade education, many with no technological advancements such as computers or even electricity, have such an astounding rate of success?
The researchers who have studied this phenomenon have identified 5 basic characteristics of these simple yet successful businesses:
1. An ethic of hard work.
Proverbs 10: 4-5 tell us, “Laziness leads to poverty; hard work makes you rich. At harvest season it’s smart to work hard, but stupid to sleep.”
2. Use of apprenticeships to train young entrepreneurs.
We have lost the art of mentoring; Jewish fathers always taught their children a trade or skill. Today we are raising sons and daughters with no identifiable areas of vocational focus and no marketable work skills.
3. Small scale operations.
We are so quick to believe that bigger is better. Often it is just bigger. Small and profitable is better than big and sucking wind.
4. Frugality and austerity, resulting in low overhead.
In these Amish businesses, the owner is usually doing the hands-on work. No fancy offices or board rooms, just the basic needs. Operating from a home farm, many have no rent or lease expense.
5. Product quality, uniqueness, and value.
The United States is known for shoddy workmanship and poor quality. A return
to quality is a key to success. People expect Amish workmanship to be quality and they get what they expect.
These amazing results appear to be based on simple, basic principles. Integrity, character, and value do have a lasting and profitable outcome.
And then I’m reminded why I choose to work out of this converted barn on our rural property. It embraces everything mentioned above.
Which of these are you using to ensure your business success?
Great post Dan! I recently took a buggy ride up in Lancaster County, PA, and after doing a rough estimate, I figured the Amish family with their one buggy, were making up to $1000/day with no employees and little overhead. At the end of the ride, the driver dropped us off at his antique shop, where we had parked our cars.
By the way, for those in the 48 days community looking for supplementary income, the buggy driver told me that the Amish sometimes need transportation over long distances. He said 90 cents – $1 per mile is a reasonable fee.
Brandon – oh how cool! Yep my Dad used to drive for the Amish – $1 a mile.
I live in Akron Ohio, I used to investigate fires for insurance companies. The Mennonite and Amish community fires would always come back as accidental in cause regardless of the actual cause of the fire. This was not due to some fraudulent or misleading activity, but because of hard work ethic.
You see, by the time the insurance company would hire us to get out to the scene of the fire, the Community members would have the building torn down and 1/2 way rebuilt.
My lessons learned:
Never underestimate community.
Strong work ethic is priceless.
Sincerely,
Ben Ure
Cuyahoga Falls, Ohio
O-H!
Ben,
I still love that they are not dependent on the government or even insurance companies. They just go about living life together.
Thanks for sharing that very interesting piece.
My husband drives the Amish. He’s on the road right now. They go everywhere!!
Sindy,
Oh how cool. And yes they do. It’s amazing how active they want to be even if it’s a little inconvenient.
Great post, Dan! Thanks for reminding us that bigger is not always better!
It is interesting sometimes how you look back at what seemed to only be ordinary has become beautiful. There is art in the living and the imagination that has gotten you to where you are today. Thanks for sharing that.
Dan,
What an interesting and eye opening blog. Ben’s note below about the insurance companies around fire claims is really amazing. So many times folks today look at what can be done for them rather than looking at what we can do for each other.
“I asked a millionaire to lunch and now I work for him.” Not part of the blog but my favorite thing on the page. When and where? On the blog I think number 5 is mine.