I had the pleasure of recently running into Judy Greene from the Family Firm Institute at a meeting. During our conversation I asked her if it’s still true that 30% of first generation businesses end up being transferred to the second generation.
Her reply surprised me. Instead of answering the question she gave me a completely different perspective to think about. She said the way to think about my question is about family business formation, not just about the original family business. This different perspective fits in with what I’ve been observing for the past several years. It appears that children might not go into the family business, but that doesn’t mean they don’t go into any business.