Family businesses and the growing succession gap<\/strong><\/p>\n\n\n\n There is a familiar \u201ccurse\u201d in the world of family businesses that both research and practice acknowledge: the vast majority of family businesses cannot successfully transition beyond three generations. The first generation builds with ambition, the second maintains discipline, and the third often grows up in comfort, without directly experiencing the initial hardships. As a result, their connection to the shared legacy often weakens. This phenomenon is not just a statistical pattern but reflects a profound governance challenge: how to maintain both managerial capability and commitment to succession across generations.<\/p>\n\n\n\n In Vietnam, this risk is becoming increasingly apparent. In a rapidly changing society, more young people are hesitating or outright refusing to take over the family business. PwC\u2019s 2023 global survey revealed that only 23% of next-generation successors intend to stay long-term with the family company. This is an alarming figure when placed against traditional expectations of continuity. Rather than viewing succession as an honor, many young people see it as a predetermined path that does not align with their passions and personal aspirations. Without mechanisms for dialogue, opportunities for growth, and trust built over time, withdrawal from the successor role becomes inevitable, and the three-generation curse continues to repeat.<\/p>\n\n\n\n Three barriers to generational transfer<\/strong><\/p>\n\n\n\n Value and expectation gaps between generations<\/em><\/strong><\/p>\n\n\n\n One of the biggest barriers comes from differing values between generations. Parents often associate succession with loyalty and family duty, while their children seek personal development and freedom for creative expression. According to Neubauer and Lank (2016), the founding generation tends to operate through a centralized, intuitive leadership style based on personal trust, whereas the next generation\u2014especially those with global education\u2014expects transparency, empowerment, and data-driven governance. As a result, two-way dialogue becomes difficult. Many young people feel \u201cpre-directed\u201d into a path they did not choose, which leads to feelings of coercion. Some quietly withdraw; others remain but are not truly committed, leaving the company in a state of \u201creluctant partnership.\u201d<\/p>\n\n\n\n Lack of professional succession planning<\/em><\/strong><\/p>\n\n\n\n Succession is not a spontaneous process; it requires structured preparation and a clear strategy. Research by Le Breton-Miller et al. (2004) emphasizes the importance of a \u201csuccession plan\u201d\u2014a long-term, strategic process that includes training, mentoring, competency assessment, and consensus among stakeholders. However, in reality, many family companies delay or avoid this process. A 2022 Harvard Business Review survey indicated that nearly 60% of family businesses lack a documented succession plan, resulting in rushed, non-transparent transitions or internal divisions. As a result, successors may feel distrusted or unprepared, leading them to leave the organization before even beginning their roles.<\/p>\n\n\n\n A culture of control that prevents young people from learning through failure<\/em><\/strong><\/p>\n\n\n\n Another factor discouraging the younger generation from taking over is the fear of failure, particularly when failure occurs under the shadow of their parents. In many family businesses, a tightly controlled culture leaves little room for young leaders to experiment, make mistakes, and learn. They are often judged harshly, not listened to, or labeled as \u201cnot yet mature.\u201d According to research by Cabrera-Su\u00e1rez et al. (2001), one of the key factors for successful transitions is creating an environment where successors are gradually empowered, given space to fail, and guided by the older generation throughout their development process.<\/p>\n\n\n\n Rebuilding trust in succession: strategic directions<\/strong><\/p>\n\n\n\n Instead of approaching succession as a \u201cduty to fulfill,\u201d modern family businesses need to shift their mindset from the traditional \u201chandover of the throne\u201d to a strategy of \u201cempowering successors.\u201d Creating conditions for the next generation to actively choose their own path, rather than being forced into pre-assigned roles, is the foundation for building long-term commitment. International groups such as the Lego Group and Tata Group have successfully implemented rotational training programs, allowing successors to experience multiple positions before officially assuming leadership roles aligned with their capabilities and personal interests.<\/p>\n\n\n\n At the same time, a mentorship model where the founder acts as a guide rather than a controller has been proven effective in helping the next generation develop leadership skills while easing the pressure of expectations. Notably, many businesses adopt a \u201cco-leadership\u201d (co-CEO) model, such as J.M. Huber Corporation, where father and child jointly hold executive roles during the transition period. As De Massis et al. (2008) emphasize, successful succession is not simply about handing over a title; it is a process of nurturing capabilities, building trust, and forming a leadership identity. If the family business is not a place where the next generation feels chosen, allowed to fail, and developed according to their potential, withdrawal from the successor role is almost inevitable.<\/p>\n\n\n\n Reference<\/strong><\/strong><\/strong><\/p>\n\n\n\n Cabrera-Su\u00e1rez, K., De Sa\u00e1-P\u00e9rez, P., & Garc\u00eda-Almeida, D. (2001). The succession process from a resource- and knowledge-based view of the family firm. Family Business Review, 14(1), 37\u201346. https:\/\/doi.org\/10.1111\/j.1741-6248.2001.00037.x<\/a><\/p>\n\n\n\n De Massis, A., Chua, J. H., & Chrisman, J. J. (2008). Factors preventing intra-family succession. Family Business Review, 21(2), 183\u2013199. https:\/\/doi.org\/10.1111\/j.1741-6248.2008.00118.x<\/p>\n\n\n\n Neubauer, F., & Lank, A. G. (2016). The family business: Its governance for sustainability. Routledge. https:\/\/doi.org\/10.4324\/9781315250246<\/a><\/p>\n\n\n\n