The family business focuses on maintaining ownership across multiple generations but they might not be considered compatible with entrepreneurship. The heirs of the family firms are supposed to take care and grow founder’s creation, but they are not expected to be entrepreneurs themselves. This often kills the family business.

The Stats Says It All

According to a survey, only 60% of the family businesses survive to the second generation and only 12% to the third generation. This is because in family businesses one has to focus on balancing financial performance as well as maintaining family control which in turn affect their decisiveness and planning and this cannot be maintained without the entrepreneurial mindset.

Entrepreneurship in Family Business=Scalability

We think that family business and entrepreneurship are two opposite poles but the truth is family businesses are incomplete without an entrepreneurial touch. They are actually two faces of the same coin. We have to understand the practicality that we can create more opportunities in family businesses which can be done by widening the customer segment, by expanding the business into the new market or by adopting the changes and diversifying into the activities that can grow. This will also help in overcoming identity crises. The importance of entrepreneurs is not
only the continuation of the family company but for the continued success of the family itself.