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Family Business

Family Business Curse

Family businesses are the subject to a unique paradox, in the one hand it is a large contributor to the economy as a whole, and on the other hand it has a low survival rate. This is shown by a study done by Family Firm Institute in 2019 that found family businesses generated 70%-90% of the annual GDP in the US. The study also found that the majority of family businesses do not survive past the 3rd generation, this phenomenon is also known as the “Third Generation Curse”. According to the Family Business Alliance (2004), around only 30% of all family-owned businesses successfully make the transition into the second generation, 12% of which will still survive into the third generation, and only 3% of all family businesses are able to make a successful transition into the fourth-generation family members and beyond. The main reason why family businesses are not able to […]

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