Why the Second Generation Can Make or Break Your Family Business
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While the traditional view of family business is that first-generation business founders are the entrepreneurial dynamos whose work and energy drift away in subsequent generations, the second generation of a family business doesn’t have to live in the shadow of the first generation. Second generation leaders are often the unsung heroes in a family business. They play a pivotal role in professionalizing the business and building out new initiatives, building on the legacy of the first generation to develop a great family, not just a great business. Successful second-generation leaders tend to focus more than the first generation on gathering and aligning disparate family members to create a strong family pillar alongside a well-developed enterprise pillar. The second generation is therefore crucial to pivoting the family away from a single-minded focus on business development to a broader set of initiatives where family communication, governance, and cohesion are fostered. With proper support, coaching, and recognition, the second generation no longer needs to be considered second best.
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