For any family business, there’s a statistic that should give every entrepreneur pause for thought: only 4% of family-run businesses in Italy make it to the fourth generation. The rest disappear through failed succession plans, internal conflicts, poor decisions, or worse still, decisions left unmade.
Yet the problem isn’t the next generation. They’re often more educated, more motivated, and more attuned to the modern market than the founders themselves.
The real issue? It is treated as a single event rather than as a strategic, long-term process.
According to leading studies on the subject:
And these figures are no accident. They reflect a lack of structure, planning, and forward thinking.
Over the years, working closely with SMEs in Italy and Spain, I’ve witnessed dozens of succession processes fall apart. The root causes are almost always the same. Here are the top four:
The founder, still hands-on at 75, finally declares it’s time to step aside. But by then, it’s too late. The next generation isn’t ready. The team lacks clarity. The market has moved on.
Planning should begin at least 10–15 years before the handover. It needs to be an integral part of the company’s long-term strategy, not a last-minute change of guard.
“He’s my son, so he’ll run the business.” This is one of the most damaging assumptions. A company isn’t a sentimental heirloom—it’s a complex organization that demands leadership, vision, and skill.
A family name may open doors, but only competence and merit will keep them open. The most successful family businesses have clear, merit-based pathways for younger generations to enter and grow within the company.
Many founders remain committed to methods and traditions that were effective decades ago but are now outdated. The words “this is how we’ve always done it” often signal the beginning of the end.
Markets evolve through technology, competition, and shifting customer expectations. Refusing to adapt means stagnation. And when the next generation tries to innovate, they often run into a wall of nostalgia and resistance.
The senior generation wants continuity; the junior wants transformation. One seeks obedience, and the other seeks autonomy. The result? Deadlock.
The solution involves structured dialogue, precise role definitions, shared strategic goals, and a mutually agreed-upon timeline for transition.
Family businesses that make it to the fourth generation aren’t lucky—they’re prepared. They understand that succession isn’t just a leadership shift; it’s a chance to redesign, renew, and reinvent.
I’ve worked with business owners who have made bold but necessary choices, including bringing in external advisors, assigning experienced mentors to younger leaders, revising board structures, and separating ownership from day-to-day management.
Most importantly, they’ve reframed the handover as an opportunity, not a threat.
It’s a chance to embrace innovation, modernize operations, enter new markets, and future-proof the business for decades to come.
Here are a few examples of what forward-looking family businesses are already doing, often with external support:
As a Fractional Sales & Marketing Action Manager, I work closely with family-owned companies to support generational transition with structure, clarity, and results. My focus is not on abstract theory—but on action, growth, and practical execution.
Here’s how I can help:
This isn’t just about survival. It’s about building a future where the right people—regardless of surname—can lead with confidence, purpose, and accountability.
The 4% who make it aren’t luckier or smarter. They’ve understood that generational change must be designed, not deferred.
It takes courage to act. It takes humility to bring others in. It takes discipline to plan succession with the company’s long-term health as the top priority, not personal pride or emotion.
If you want your business to be part of that 4%, the time to act is now.
Please let me know if you’d like a shorter version for LinkedIn or newsletter publication, or a carousel format for social media.
For any family business, there’s a statistic that should give every entrepreneur pause for thought: only 4% of family-run businesses in Italy make it to the fourth generation. The rest disappear through failed succession plans, internal conflicts, poor decisions, or worse still, decisions left unmade.
Yet the problem isn’t the next generation. They’re often more educated, more motivated, and more attuned to the modern market than the founders themselves.
The real issue? It is treated as a single event rather than as a strategic, long-term process.
According to leading studies on the subject:
And these figures are no accident. They reflect a lack of structure, planning, and forward thinking.
Over the years, working closely with SMEs in Italy and Spain, I’ve witnessed dozens of succession processes fall apart. The root causes are almost always the same. Here are the top four:
The founder, still hands-on at 75, finally declares it’s time to step aside. But by then, it’s too late. The next generation isn’t ready. The team lacks clarity. The market has moved on.
Planning should begin at least 10–15 years before the handover. It needs to be an integral part of the company’s long-term strategy, not a last-minute change of guard.
“He’s my son, so he’ll run the business.” This is one of the most damaging assumptions. A company isn’t a sentimental heirloom—it’s a complex organization that demands leadership, vision, and skill.
A family name may open doors, but only competence and merit will keep them open. The most successful family businesses have clear, merit-based pathways for younger generations to enter and grow within the company.
Many founders remain committed to methods and traditions that were effective decades ago but are now outdated. The words “this is how we’ve always done it” often signal the beginning of the end.
Markets evolve through technology, competition, and shifting customer expectations. Refusing to adapt means stagnation. And when the next generation tries to innovate, they often run into a wall of nostalgia and resistance.
The senior generation wants continuity; the junior wants transformation. One seeks obedience, and the other seeks autonomy. The result? Deadlock.
The solution involves structured dialogue, precise role definitions, shared strategic goals, and a mutually agreed-upon timeline for transition.
Family businesses that make it to the fourth generation aren’t lucky—they’re prepared. They understand that succession isn’t just a leadership shift; it’s a chance to redesign, renew, and reinvent.
I’ve worked with business owners who have made bold but necessary choices, including bringing in external advisors, assigning experienced mentors to younger leaders, revising board structures, and separating ownership from day-to-day management.
Most importantly, they’ve reframed the handover as an opportunity, not a threat.
It’s a chance to embrace innovation, modernize operations, enter new markets, and future-proof the business for decades to come.
Here are a few examples of what forward-looking family businesses are already doing, often with external support:
As a Fractional Sales & Marketing Action Manager, I work closely with family-owned companies to support generational transition with structure, clarity, and results. My focus is not on abstract theory—but on action, growth, and practical execution.
Here’s how I can help:
This isn’t just about survival. It’s about building a future where the right people—regardless of surname—can lead with confidence, purpose, and accountability.
The 4% who make it aren’t luckier or smarter. They’ve understood that generational change must be designed, not deferred.
It takes courage to act. It takes humility to bring others in. It takes discipline to plan succession with the company’s long-term health as the top priority, not personal pride or emotion.
If you want your business to be part of that 4%, the time to act is now.
Please let me know if you’d like a shorter version for LinkedIn or newsletter publication, or a carousel format for social media.
