Running a family business? Pass the baton early
SEE ALSO :You are only as good as your team“Continuity is critical because it supports the legacy of both the family and the business. It also has an impact on employees and community and is an important facet of supporting growth and longevity,” the 2018 PwC Next Generation Study says. The older generation passes down important business lessons to heirs thus ensuring continuity and growth. They also take their kids to the best schools. “The preparation starts from when you are born. I’ve been going to the office with my grandfather for as long as I can remember,” one entrepreneur told PwC. Unfortunately, many family-owned businesses in Kenya collapse after the founder’s death. According to 2018 PwC Family Business Survey, only 17 per cent of local family businesses have a robust, formalised and communicated succession plan in place. The survey notes that the ability of family firms to survive across many generations lie with how well the current generation prepares the next generation to manage the businesses.
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