(FORTUNE Magazine) – A wonder of the $3.7-trillion U.S. economy is that the vast majority of businesses are family owned. Though some outgrow their mom-and-pop beginnings and become household names--cosmetics giant Estee Lauder, toymaker Mattel, Beech Aircraft--most remain what they have always been: the corner store, the neighborhood restaurant, the local bookshop, the small manufacturer. On the whole, they are just profitable enough to support the family in a modest fashion. Even that seems miraculous in an era of proliferating chain stores and franchises, with all their capital, expertise, and economies of scale. Some mom-and-pops compete by offering unusual services or products, others trade on quality. Whatever the secret, survival in these times of rampant small-business bankruptcies depends on skillful management. The following pages present a cross section of family businesses that are making it.