Why My Generation Isn’t Taking Over the Family Business—and What Owners Can Do About It

Understanding Shifting Priorities and Strategies for Succession

The generation gaps between Baby Boomers, Gen X, Millennials, and now Gen Z and Gen Alpha are well-documented in everything from their communications style to their values and priorities. 

While much has been written about bridging this divide in the workplace, it’s not just an issue for the corporate world: these gaps also appear in family businesses. And they can really come into focus when the issue of succession arises.

Since joining MC Advisory earlier this year, I’ve been struck by many conversations I’ve had with owners of small to medium-sized family businesses across Atlantic Canada who say the next generation—my cohort—has no interest in running things when they retire. 

I also hear about it from the younger generation, especially from friends whose families have successful businesses. Their industries are different, but they all have one thing in common: none of my friends wants to take over.

That’s not because they don’t admire and appreciate what their parents built. It’s just that their career goals, values, interests, inspirations, and aspirations are different. 

This isn’t just an anecdotal observation: according to KPMG, 80% of Canadian family business leaders are considering accelerating their succession planning or exit due to family dynamics and economic uncertainty. While 79% say they dream of transitioning the business to a younger generation within the family, 71% feel the next generation isn’t ready for the responsibilities of leading the business forward.

As someone who sits between these generations, I wanted to offer a perspective bridging these cohorts. I also wanted to share a few actions owners can take that may increase the appeal of the family business to their offspring.  

Different Values, Different Vision

Sometimes, older generations assume younger ones aren’t interested in hard work, but I don’t think that’s fair or accurate. We’re not lazy, we’re just looking at the world differently. 

My generation is looking for meaningful work, as Deloitte’s 2024 Gen Z and Millennial Survey found, with nearly 90% of us saying having a sense of purpose is key to job satisfaction. Work-life balance is also a top consideration for younger workers. 

Plus, my generation is the first to grow up with the internet. For many of us, our heroes are the technology entrepreneurs who built their own companies. These Silicon Valley startups didn’t inherit someone else’s legacy—they created their own, and that founder mindset has shaped how many of us see our future. Progress, change, and innovation, not just stability, drive us. 

Take my friend, who’s working in his family’s business, which his father built from scratch. It’s a successful company with growth opportunities, but my friend and his brother aren’t considering keeping it and passing it down to their kids. They’re thinking about growing it to sell and starting something new. That’s a shift I keep seeing, and it will likely continue. 

Passion Vs. Tradition

Values are important–but so is passion. Even very profitable businesses might not spark excitement in the next generation. I think of a friend whose family had a steady business with multiple locations. Solid, stable, profitable. But my friend obtained a professional designation, and he has never considered joining the family business. It just wasn’t where his interests lay.

There’s also the “unsexy” factor of some traditional businesses. As my friend said, “When I meet someone at the bar, I don’t want to talk about the industry the business is in.” That might sound a bit harsh or ungrateful, but it speaks to a broader trend: Younger professionals are gravitating toward tech, consulting, and industries that align with their identities, strengths and skills.

We’re also environmentally conscious. A family business tied to high carbon emissions may feel incompatible with our values, especially as Canada moves toward net-zero emissions.

What Can Business Owners Do? 

What does this mean for business owners hoping for intergenerational succession? Planning is vital. Here are three things I encourage clients to consider:

1. Be Transparent and Plan Early

One of the biggest things I’ve learned is how crucial it is to start succession planning early. Broach these conversations with the next generation long before it’s time to retire and pass on the business. And if you have specific qualifications or skills in mind for your successor, whether it’s a CPA designation or operational experience, make that clear. 

Deloitte’s research on family offices shows that 30% of leaders doubt that the next generation is ready to take over, and 28% think we’re unqualified. That’s often tied to expectations around education and skills. Don’t assume your kids know what you expect–talk about it. 

2. Embrace Innovation

My generation has grown up with technology, and we’re keen to put it to work. If your kids have ideas on incorporating it into your business, hear them out and try it out. 

You might be excited about what new software, equipment, or processes can do to drive efficiency, profitability, or sustainability. And these updates don’t just make your business more appealing to family successors, they also increase its value if you end up seeking outside buyers.

3. Evolve Your Culture

As mentioned above, a healthy work-life balance and flexibility are essential for my generation.

If you’re willing to be open and evolve your company culture, you’ll more likely appeal not only to successors but also to attract top-tier talent. You don’t have to install a ping-pong table, but you might consider introducing hybrid work arrangements, new systems, or a culture that welcomes new ideas.

Rethinking Your ‘Legacy’

It can be hard for business owners whose dream was to pass their businesses on to their kids to accept that it’s not happening. 

But that doesn’t mean the family business has to disappear. It might mean a sale to outside leadership. That’s where firms like ours can help—by valuing your business, finding the right buyer, and ensuring your legacy continues in a new form.

This is a big moment for small and medium-sized businesses in Atlantic Canada. The rise of private equity offers new avenues for selling, and the consolidation trend is opening up new opportunities in many industries.

And remember, younger generations may not want your exact business, but they still want to build something. Entrepreneurship hasn’t died. It’s just evolved.

William Blunden, CPA, is an advisor in MC Advisory’s Transaction Advisory Services.