Family businesses account for between 80% and 95% of industrial activities in advanced economies.
It is certainly a cliché to say that ’the first generation creates, the second continues, and the third destroys,“ but the most up-to-date analyses of generational transition in Italy say that the risks to business continuity are very real and that only about 1/3 of businesses survive the transition from the first to the second generation by initiating a new phase of growth.
In family businesses, succession is a complex process and the management of this process requires strong leadership and delegation qualities.The problem of generational transition in SMEs is considerable and should not be underestimated.
It is estimated (EU statistics) that 30% of family businesses will not go through the succession process; applying these indications to the Italian reality, it can be assumed that 20,000 businesses each year will be induced to closure or divestment by the succession processes. Each year as a result, 65,000 jobs could be at risk.
Therefore, it is necessary to best manage the generational transition by taking into consideration equity (assets), harmony (family), and meritocracy (company) by preparing a program of Operational Excellence based on waste-free processes (lean), innovation, and sustainability.
Bonfiglioli Consulting successfully completed the generational transition in 2010 and is able to accompany family businesses through the difficult generational transition through the "Family Business Program“ also developed based on its own direct experience.
