American Government - a Family Business?

In a survey conducted by consulting firm Grant Thornton LLP, nearly 70 per cent of family-owned businesses fail to reach the second generation and 90 per cent do not reach the third generation.

Donald Emerson, a partner at Grant Thornton in Toronto, helps family-owned businesses develop succession plans. He says failures of family-owned businesses beyond the first generation can be attributed to lifestyle differences between generations.

"There's the expression: from rags to riches to rags," says Emerson. "The first generation starts with nothing and they're frugal."

He explains that the second and third generation are accustomed to greater wealth and may not have the same work ethic and mindset as the first generation....

Toronto Star Article

After the 2004 election, at least seven of the 41 new House members were relatives of prominent politicians. Washington Post

Now consider this, Prescott Sheldon Bush was a US Senator from Connecticut from 1952 to 1963. In 1989 his son George Herbert Walker Bush was elected President of the US. Twelve years later, Prescotts grandson, George W. Bush, became President of the US.

Our friends at Grant Thornton have some recommendations for familyowned businesses: When considering future ownership and management of your business, decide what qualifications a successor should have before you consider any individual family member. Don't choose a family member first and then try to attach the relative's qualifications to the position. If no family member is suited to running the company&..You might consider placing third parties in key roles.... Small Business Advise