Small business answers — NOW!

Third-generation challenges

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. 
Brain Trust contributor: Family Business Psychologist and author of Your Family, Inc.
© 2007, Small Business Network, Inc., All Rights Reserved.
Subject to the Terms of Use of
Print this page   Bookmark this page   E-mail this page to a friend   Go back to previous page
AskJim ID: 1082