"In the United States, 32 million family-owned businesses form a vital pillar of the economy, injecting $7.7 trillion annually into the GDP and creating 83.3 million jobs, according to Deloitte's 2024 Family Enterprise Survey. Yet, their broader value is measured in intangible qualities, often cultivated over generations: the spirit of entrepreneurship, a commitment to a long-term vision and a dedication to their communities."
"Engage future generations Not every family member will be inclined to work in the business. Still, Deloitte found that 46% of the upcoming generation expects to hold leadership, C-suite or executive-level roles within five years, and 28% of current leaders plan to transfer power within that time frame. In preparation, it's a good idea to examine and simplify existing ownership structures to avoid fragmentation in later generations."
"Multigenerational companies can create a family constitution to help define prerequisites for joining the company, such as meeting specified educational requirements or gaining external experience. They can also form a family board to facilitate interaction, including annual meetings, role playing and family culture training. These companies engage with independent advisors, such as bankers, financial planners, lawyers and accountants, to assist with succession planning. Advisors can offer strategic and unbiased perspectives, help families focus on long-term goals and bridge generational gaps."
32 million family-owned businesses generate $7.7 trillion yearly and create 83.3 million jobs in the United States. Family enterprises embody entrepreneurship, long-term vision, and community commitment passed down through generations. Balancing personal and professional bonds introduces challenges that require tailored management of family dynamics, succession planning, and capital structure. Preparing for leadership transfer involves engaging future generations, simplifying ownership to avoid fragmentation, and establishing prerequisites for company roles. Families benefit from a family board, a written family constitution, and independent advisors who provide strategic, unbiased guidance to bridge generational differences and support long-term goals.
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