The Challenge of the Third Generation

“Three generations from shirtsleeves to shirtsleeves,” Andrew Carnegie commented on the tendency of families to squander their wealth in a relatively short span of time. There's a message in that for business owners.

One of the most difficult transitions that a family business must make is from the second to the third generation. It's not just that the third generation, accustomed to wealth and privilege, is likely to spend the business into bankruptcy. They also have a very difficult time getting their acts together and providing the leadership necessary for the business to survive.

Already a subscriber? Sign In

About the Author(s)

Related Articles

KEEP IT IN THE FAMILY

The Family Business newsletter. Weekly insight for family business leaders and owners to improve their family dynamics and their businesses.