Family businesses are much more than commercial ventures—they are the backbone of economies and communities around the globe. These businesses, founded in passion and sustained by purpose, embody values like resilience, stewardship, and the ambition to build a lasting legacy. In fact, family businesses account for most of the world’s private enterprises, representing nearly 80% of businesses in many countries and employing millions. And yet, the journey of leading a family business is a distinctly personal one, marked by both unique challenges and enormous opportunities.
Deloitte Private recognizes the extraordinary impact family-owned companies have on the marketplace and society. That’s why we’re proud to introduce “Family Business Focus,” a dedicated video series designed to help these enterprises sharpen their strategic approach to governance, culture, innovation, growth, and risk management.
Navigating the family business landscape
While every business must manage growth and risk, family-owned companies face issues that run deeper and often more emotionally charged. Leadership succession is not just a boardroom matter—it’s about passing values and vision to the next generation. Balancing business performance with family harmony can require delicate decisions, particularly with stakeholders who share more than just financial interests.
Research shows that nearly 70% of family-owned businesses struggle to successfully transition leadership to the second generation, and fewer than 15% remain family-run by the third. Despite these odds, those that do endure often credit a strong sense of purpose, commitment to long-term strategy, and the ability to innovate and evolve.
Five critical topics for family enterprises
In the five-part series, Deloitte Private leaders Kirsten Vosen and Laura Pearson draw on their deep first-hand experience guiding family enterprises through pivotal moments. Each episode dives into a cornerstone theme—always with practical insights tailored to the realities of family ownership.
1. Governance: the power of structure
Effective governance remains one of the defining success factors for family businesses.
“Family enterprise governance is a spectrum,” says Laura Pearson, Deloitte Private US Family Enterprise Leader, and partner at Deloitte Tax LLP. Unlike public corporations, governance in family enterprises can range from informal meetings to established, independent boards with dedicated subcommittees. The common goal of most of the family businesses she serves is moving to a more mature governance structure, due to the value it provides to the organization.
The first episode explores practical steps to formalize governance, customize board composition, and balance family and independent perspectives. This clarity can be the stabilizing force that ensures decision-making is both agile and sustainable—especially as family businesses scale or bring in outside talent.
2. Culture: sustaining values through generations
Family businesses often set themselves apart through distinct organizational cultures, built on trust, merit, and shared history. In part two of the series, Kirsten and Laura emphasize that a thriving culture must value both family and non-family employees, rewarding effort and innovation regardless of pedigree. Strong family cultures fuel loyalty and retention, foster community links, and anchor businesses amid rapid change.
3. Innovation: turning tradition into transformation
Contrary to stereotypes, family enterprises can be among the most innovative players on the market. Their close-knit decision-making and willingness to take calculated risks—often informed by generational wisdom—allow them to quickly embrace new opportunities. Recent Deloitte Private research shows that family businesses are leading in areas such as AI adoption and digital transformation. In this third episode, Kirsten and Laura tackle why family enterprises may in fact be more innovative than their competitors and how to harness that “secret ingredient” for sustained growth.
4. Growth: adapting to market shifts
Growth is central to every business but presents unique considerations for family-owned firms. Family businesses frequently self-finance or carefully steward capital with a long-term lens. The changing interest rate landscape, highlighted in episode four, has real implications for private enterprises seeking expansion. Whether pursuing mergers and acquisitions, entering new markets, or navigating generational transitions, growth strategies must account for risk, opportunity, and the impact on family legacy.
5. Risk management: protecting what matters most
From cyber threats to reputational risks, family businesses face evolving challenges that can jeopardize not only financial health but family legacy itself. The final installment of “Family Business Focus” discusses leading practices in safeguarding assets, managing reputation, and developing comprehensive risk management frameworks that keep both the business and the family protected.
The personal side of family enterprise
Family-owned businesses combine commercial purpose with personal relationships, and this proves to be both a source of strength and a challenge. Owners and heirs must navigate balancing tradition with innovation, preserving legacy while embracing change. The series explores what it means to lead with empathy, resolve conflicts, and foster unity even as roles and goals evolve.
Are you ready to take your family enterprise to new heights? “Family Business Focus” offers exclusive insights and practical advice for business owners, leaders, and future successors. Led by Deloitte Private’s family enterprise advisors, each episode provides actionable strategies for setting your business on a clear path to long-term success.
To watch part one, on governance—and to access all five episodes—visit the Family Business Focus home page.
FROM OUR SPONSOR, DELOITTE PRIVATE
