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Why family businesses fail

Why family businesses fail

Looks like a major reason family businesses fail when one generation hands off to the next is because the managers were reluctant to aggressively manage their progeny. Inc.com, the Web site of Inc. magazine, quotes a new study by accounting firm Kreischer Miller that surveyed some 3,000 businesses and found that relatives are reluctant to discipline each other, and that leaves the newbies unprepared.

The implication: If you have a family-owned business and want it to surprise, don't be afraid to deal with the younger generation in a professional, rather than purely familial, manner.