Do family business NextGens need outside work experience?

Document Type

Article

Publication Date

3-9-2024

Abstract

Requiring family members to work outside the family firm is a hotly debated topic. While family business advisers have long recommended outside employment as the “best way” to prepare the next generation, there is no research to support this claim.

With the help of colleagues from six family business centers around the country, we asked 37 members of 11 successful and sizeable U.S. family businesses what their experiences were. Some had the requirement, others did not. We also looked at the benefits and problems experienced by families who had a requirement and by families who did not have one. Participating families were members of the third or later generations. The CEO of each company was interviewed, as well as at least one other family member and a non-family member who works closely with the CEO.

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