'I went to a Harvard seminar in Sydney recently and the name of the seminar was 'Family businesses: successes and pitfalls'. The lecturer there said a typical family business is one where the founder starts it, the second generation builds it up and the third generation blows it up. Now there is a lot of truth in that.'
About this quote
- What does it mean?
- The speaker recounts a seminar saying family businesses typically succeed in the first two generations and fail in the third, noting truth in that pattern.
- In plain terms
- He says family firms often thrive for two generations then collapse.
- What can you take from it?
- Succession planning is vital for family business longevity.
Where it applies
Putting it to work
Questions to consider
- Why do many businesses fail in the third generation?
- What can break the cycle?
Another view
Not all family firms follow this exact pattern.
More from Hari Punja
'Indo-Fijians have a good future in Fiji but unfortunately they are being ill-advised, their community leaders lack good leadership.'
Permalink to quote #3 'In business I believe the idea is to look for opportunities and if you do what others are doing you will never succeed.'
Permalink to quote #5 'I think that we (Indo-Fijians) have a great future in this country if we can grab the opportunities that are ahead of us.'
Permalink to quote #2
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