Many entrepreneurs generate a huge amount of wealth that they want to pass on to their children and grandchildren. They are not yet a family business, but they want to become one. They want to see the wealth used wisely, and their business and investments to continue to add value. But the mindset that led to their success often undermines how open they are to the changes needed to continue business into a second generation. It’s the next-generation dilemma: How do succeeding generations preserve the founder’s legacy and continue to build a thriving family enterprise?
Moving a Family Business Beyond the Founder’s Vision
How the next generation can embrace the future — while respecting the past.
September 21, 2022
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Summary.
To sustain a long-term family enterprise, it’s clear that having a founder who builds a great business is only the first step. As the legacy business and the entrepreneurial leadership of the founding generation gives way to the next generation, the business enters a transition to a new era where there are several related family owners, who often need to create a path to reconsider what business they are in, which goals to develop, and how they will do that. They must redefine the business and develop new opportunities for a new era. This transition requires members of the second and third generation to become entrepreneurs and pioneers in their own right. Their leadership is often less visible than that of the founder, but no less important.