Importance of Next Gen Development.
Leaders at any management level who are members of any generation of the business-owning family other than the generation that founded the business. Next generation plays a big role; it brings continuity, and they are the ones that will make sure the legacy carries.
Its contribution to Family businesses in Kenya and to the Africa region.
Studies (Eide Bally) have found that 30 % of family businesses have adopted next generation development plans, while approximately 70% of global family businesses do not have a formal succession plan in place.
Pwc Jakarta, 6 June 2022.For the next generation of family business leaders, growth and sustainability go hand-in-hand. In new research from (PwC Kenya) 65% of next generation (NextGen) family business members say achieving business growth is a top priority. At the same time, nearly the same number, 64%, say their family business has the opportunity to lead the way in sustainable business practices. More than than half, 55%, believe their family business puts sustainability at the heart of everything they do.
Family business challenges: Lack of Next generation development.
According to the (Conway Center for Family Business), little more than 30% of all family-owned businesses transition to the second generation, and when it comes to the third generation, only 12% succeed. By the fourth generation, only 3% will still be operating as a next-generation family business.In the recent past, Kenyans have witnessed some family-owned companies collapse in the hands of improper Nex Gen management like Tuskys and Akamba Bus(Ronalds).
Unpreparedness: Parents may assume that their children are interested in taking over the business without actually consulting with them. Similarly, children may assume that their parents or grandparents will always be around to run the business, leading to stress and frustration when that turns out not to be the case.
You may have spent time and energy training one child on the workings of the business, but what happens if that child has a terrible accident, or decides against stepping up to lead the business?
To address these challenges, that’s where IFFB comes in. As your trusted advisors, we can help your family business by providing support with next generation education and transition at every stage. No matter where your business is on its journey to success, we can be at your side with the insights and solutions you need to stay fit for growth and moving forward at the right pace.