It’s often assumed that generations clash. This is particularly crucial for family businesses, where the transfer of knowledge and power between generations is essential for long-term business success. However, as the new Family Enterprise Global Survey on Generational Perspectives reveals, gaps between older and younger generations are not as wide as previously thought.
a one-year study on generational alignment in family enterprise was recently completed by 12 academics, analysts and consultants from five reputable international institutions. The findings are summarized in the nine points below.
1. Family first: all generations prioritize their family and its enterprise.
Family was the top-rated interest by all generations surveyed, with younger generations also displaying a strong interest in family enterprise. This is notable as it challenges oft-assumed correlations between interest and age. …
2. A united front: alignment on business agendas and goals.
Here alignment is encouraging as generations must team up to define a common vision and strategy for their business. … Somewhat surprisingly, younger generations are less focused on the environment, focusing instead on digital transformation, sustainability and professionalism…
3. Does philanthropy need a make-over?
Philanthropy underpins the legacy of many enterprising families, serving to unite members and create meaning beyond wealth generation. … younger-generation members, particularly males, are less interested in philanthropic giving. A new understanding of social responsibility and how to implement it seems to be arising…
4. Closing the gender gap: it’s time to prioritize women in leadership.
Across both younger and older generations, women report being less engaged and less interested in their family enterprise than men, with women in most countries aspiring less to senior executive and board roles. … While trends vary per country, demand for workforce diversity is growing globally, as are the numbers of women business owners. …
5. Parenthood strengthens connection to the family business.
Family members with children identify more with their family enterprise, emphasize philanthropic giving and see less need for business transformation related to professionalization and digitalization. …
6. A point of difference: development agendas.
Both generations agree that younger family enterprise members need to develop practical business knowledge and leadership skills. …
7. Younger generations are less interested in systems of governance.
Younger generations are less interested in family council roles than those related to running and governing the business. …
8. Executive presence: younger generations need to be prepped for leadership.
Younger family enterprise members feel prepared for and aspire to business governance roles more so than managing roles. …
9. Trends are global, yet country-specific differences exist.
There is a high interest in family and family enterprise worldwide and the key takeaways discussed above largely hold true across regions. The study focused on countries that are both dynamic and diverse, namely Chile, China, Mexico, Spain and the United States, yet the results reflect input from close to 40 countries. While detailed country-based analysis is available, it’s interesting to note the results of Chile, as family companies account for nearly 90% of the business landscape and have significantly contributed to the country’s economic and social success. …
…younger generations are highly entrepreneurial in their mindset and eager to get started in their family business. We know the benefits associated with solid foundations, which is why we encourage our clients to set their enterprise up for generations to come by emphasizing joint family philanthropic ventures and Family Governance.