Another piece of research and the conclusions, family firms are at risk due to the lack of focus on succession planning.
A challenge the world over and it is important that family firms not only recognise the challenge, but do something about it - be that education, networking in family business groups or reading up on the subject.
At some point, there will be a 'lightbulb moment' when the current generation realise that they are not the first ever family business leader to be in this situation! Family business owners often refer to it being 'lonely' at the top but there are routes to be supported too. Once the realisation dawns it is time for action and honest and open conversation with the family, in particular the next generation, is a good place to start.
Our library of insights on succession might be a good place to start to get the ball rolling.
Initial findings from a recent though yet-unpublished Dalhousie University study suggests family-owned or operated firms comprise approximately 40 per cent of Atlantic Canada’s companies. Yet from sibling squabbles to poor succession planning, family firms face a range of exclusive risks — challenges the university-based Centre for Family Business and Regional Prosperity is helping them to manage, moderate and mitigate.