raaman
Valued Contributor
The idea of generational decline in family businesses is nothing new. The old adage from generations to generations seems to exist in one form or another in many cultures and traditions. The common assumption is that the decline is due to some kind of generation gap, with successive generations feeling less motivated and less capable of leading the family business.
But the decline in business activity of a family business over generations is not inevitable. Instead of focusing on important issues between generations, families should focus on correcting mismatches in expectations and needs. Therefore the emphasis on increasing the entrepreneurial capacity of the next generation, combined with efforts to provide opportunities for the next generation to act entrepreneurially should increase.
But the decline in business activity of a family business over generations is not inevitable. Instead of focusing on important issues between generations, families should focus on correcting mismatches in expectations and needs. Therefore the emphasis on increasing the entrepreneurial capacity of the next generation, combined with efforts to provide opportunities for the next generation to act entrepreneurially should increase.