Why do some family firms not survive through the third generation?
Family business must endure a variety of challenges in order to survive through the third generation. For example:
- In the third generation, the extended structure of the family becomes more complicated.
- The larger the family, the more diverse the values, ethnic and religious traditions, attitudes toward work and play, etc.
- As the range of differences between people increases, so does the need for building skills to negotiate and resolve conflicts. This is not easy.
- Working together successfully in an enterprise as challenging as a family firm requires good will, hard work and even some luck.
The capacity of the family to integrate new people, bloodlines and customs is central to its enduring through the generations.
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Related Categories: Business Structure, Communication, Family Business, Management, Retirement And Exit Strategies, Team Building
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