Many entrepreneurs with children dream of building a business that can be handed down to the next generation. A business that maybe our kids will inherit and continue to grow. However, recent research suggests the likelihood of such an event occurring is slim.
The Gannett News Service reports that children aren’t always suited to the family business, because they aren’t born with the founder’s work ethic. Additionally, choosing one child as CEO over others can divide a family in two. The Family Firm Institute trade group also finds that only about 12% of family businesses make it to the third generation, and just 3% make it to the fourth generation.