The future of family business in Canada

24 May 2012

Canada NewsWire

Almost half of Canada's family businesses expect to see an intergenerational transfer of management and/or ownership within the next five years; however, over 80% have no formal plans in place to prepare future generations to continue the family business legacy, according to a new report from KPMG Enterprise. Family Ties - Canadian Business in the Family Way, was developed in cooperation with the Canadian Association of Family Enterprise (CAFE).

"The general knowledge and understanding of family businesses in Canada is sparse. This study aims to advance the understanding of family businesses, their current and future owners, and the attributes that equate to their success," says Allen Taylor, CAFE Chair. Key findings: the biggest challenge facing future generations is gaining the right experience, skills and business knowledge while overcoming entitlement issues; the majority of future generation respondents identified open dialogue, mentorship programs, and formal training and development as key factors in deciding whether to join the family business; and 90% of respondents believe that family business and industry associations play an important role in their success.