Entrepreneurship Section three

Heirs are often reluctant to take over the family business

While more than half of business owners’ adult children work for the business full- or part-time, few are interested in assuming ownership. Among business owners who plan to sell but considered keeping the business in the family, 89% cite a lack of interest from their potential heirs.

In addition, a full 82% of business owners say their children would rather inherit the assets from the sale of the business than the business itself.

Thanks, but no thanks

Why business owners won’t pass the baton

None of our family members are interested in the business. It would be heartbreaking to see it fail if a family member took it over. We hope to be able
to just walk away and not have to worry
– Female, 64
It would be easier to just leave my family cash as opposed to leaving them a business that they don’t know how to run.
– Male, 56

…but when heirs do take over, parents worry about their legacy

After spending a lifetime building a successful enterprise, 62% of business owners worry about missing their role after retiring. However, most of their anxiety relates to how successors will carry on their legacy.

Among owners who are planning to give the business to family, top concerns include the future direction of the business, successors’ ability to manage the business and the potential for strain on family relationships.

Owners worry family ties will fray

My children and nephew will be the new owners. I am worried about their inexperience and ability to work
together to run the business.
– Male, 65
I am worried that I will lose a piece of my identity and that I will no longer have any say in the business.
– Male, 57