Based on findings from PwC’s 2017 NextGen Study, we identified four main approaches that NextGens — members of the next generation in family businesses — are taking to build their own paths to success. We used these approaches in our PwC Global NextGen Survey 2019 to segment the respondents. Where do you fit in?
Take this short quiz to find out which NextGen path you may be on and explore recommendations and case studies tailored to you.
Transformers take on the task of driving significant change in the family firm, and have the scope and support from the current generation to do so.
You aim to lead change in your family business and are more likely to aspire to executive roles within five years (56% of transformers said this vs. 41% of all 956 respondents, based on our 2019 NextGen Survey findings).
You are less likely than other NextGen personas to see secondments or rotations within the business as a way to help you add value (17% vs. 23% of all respondents), and you, like all other NextGens, are very confident in your leadership and problem-solving capabilities.
NextGen paths are always evolving. There is no ‘right’ way: all four paths can lead to success and some NextGens will move between them over the course of their careers, and some will be on more than one path at the same time.
“Once the next generation has learnt the ropes, the previous generation needs to provide them with the space to implement their own fresh ideas.”
Stewards focus on protecting the profitability of the family firm, and ensuring its long-term sustainability.
You are more likely to be over 35 than other NextGens (42% vs. 36% of all respondents) and to be in a management role (44% vs. 39% of all 956 respondents). You have a greater tendency to aspire to non-executive and governance roles by 2025.
You are also more likely to view social and environmental factors as drivers of change for the business (49% vs. 37% of all respondents), along with competition in your market (77% vs. 70% of all respondents). You are strongly focussed on your business within its market.
NextGen paths are always evolving. There is no ‘right’ way: all four paths can lead to success and some NextGens will move between them over the course of their careers, and some will be on more than one path at the same time.
“You need to think of ways to add value to the family business, not take your status for granted and not squander the wealth that you have not earned.”
Intrapreneurs set up their own venture within the family business, often with family financial backing.
You are more likely to feel the need to prove yourself before presenting ideas for change (27% vs. 21% of all 956 respondents). Like entrepreneurs, you are more likely to view your business as worse than competitors’ at fostering an entrepreneurial culture that embraces change. Your top priority, like that of entrepreneurs, is attracting talent, but unlike other NextGens, you believe your greatest asset is developing a strategy fit for the digital age.
NextGen paths are always evolving. There is no ‘right’ way: all four paths can lead to success and some NextGens will move between them over the course of their careers, and some will be on more than one path at the same time.
“Allow us to have our own pilot project so that we can learn and grow from it.”
Entrepreneurs set up their own separate venture outside the family firm, with no profits going back to the family business.
You are more sceptical than others about your family business’s performances against competitors. About 20% of you believe the business falls behind competitors on customer focus (compared with 9% of all 956 respondents), and 19% of you say it lags on having a strong sense of purpose (compared with 10% of all respondents). You are also more likely to feel your suggestions are hardly ever listened to (19% vs. 10% of all respondents).
You are less likely to see yourselves as future leaders of the family business — though you want to lead your own business — and are more likely to aspire to a governance role in the family business (for example, on the family council).
NextGen paths are always evolving. There is no ‘right’ way: all four paths can lead to success and some NextGens will move between them over the course of their careers, and some will be on more than one path at the same time.
“I wanted to create my own legacy… I didn’t just have to leave. I had to prove myself.”
Young successors explore their individual potential and entrepreneurial skills. Learn firsthand from renowned academics, business practitioners and your peers from around the world in an environment that is both exclusive and inclusive.
Join the PwC NextGen Club, our international community of young entrepreneurs and successors in family businesses.
Leaders of tomorrow build on their knowledge and strengths. Learn firsthand from renowned academics, business practitioners and your peers from around the world in an environment that is both exclusive and inclusive.
Join the PwC NextGen Club, our international community of young entrepreneurs and successors in family businesses.
Successors and entrepreneurs transform their businesses and shape their family legacies. Learn first-hand from renowned academics, business practitioners and your peers from around the world in an environment that is both exclusive and inclusive.
Join the PwC NextGen Club, our international community of young entrepreneurs and successors in family businesses.
Learn first-hand from renowned academics, business practitioners and your peers from around the world in an environment that is both exclusive and inclusive.
Join the PwC NextGen Club, our international community of young entrepreneurs and successors in family businesses.
You can read all of our NextGen case studies here.
You can read all of our NextGen case studies here.
You can read all of our NextGen case studies here.
You can read all of our NextGen case studies here.
Global Family Business Leader and EMEA Entrepreneurial & Private Business Leader, Partner, PwC Germany
Dr. Peter Bartels
Partner, Global Entrepreneurial & Private Business Leader, PwC Germany
Tel: +49 40 6378-2170