Second‐Generation Entrepreneurs: Passing the Baton in the Privately Held Company

The succession of second‐generation entrepreneurs to control of the family business created by their fathers is a challenging, often unsatisfactory process. A study of ten entrepreneurial families who have experienced succession discovered that the preparation of sons and daughters to take over the family business was disorganised, inadequate,and sometimes inept. Moreover, founder‐fathers and non‐family employees had done little to prepare for the transition to second‐generation leadership. Based on the troubling experience of these ten families and the author′s work with dozens of family businesses, this article proposes a comprehensive developmental model designed to increase the chances of second‐generation success.