Founders, eager for their children to join the family business, often overlook a critical truth: not every child is suited for, nor should they automatically join the family business.

The family business should never be a guaranteed career path or a default option. The idea that children have a built-in “fallback option” or an automatic “seat at the table” simply by inheritance can be detrimental to the future of the business and family.

The narratives of parents shape children’s work ethic and children may inadvertently develop a sense of entitlement, removing the incentive for them to carve their own path or earn their place. The dangers of entitlement are far-reaching. They spill over into the entire business, causing deep resentment not only among non-family members but also among other family members.

For example, practices like primogeniture, where the eldest child assumes a leadership role regardless of talent, may marginalize more capable individuals. The next generation may seek a shortcut or expect a position without having earned it. Businesses thrive on merit, not just family ties.

The way forward, then, is to cultivate a culture of earned respect and contribution from a young age. This involves:

• Early engagement & exposure: Involving the next generation through factory visits, company events, and age-appropriate discussions about the business.
• Personal vision: Next gen should be encouraged to develop their own personal vision, particularly aligned with the expectations and requirements of working in the family business.
• Governance education: The principles of governance such as fairness, accountability and trust need not be shared only when next gen is about to join. Rather, governance education should be an ongoing feature for all family members. Learning these principles helps families better manage the dilemmas and paradoxes that are an inherent part of the family business domain.
• Employment policy: Before the next gen enters the business, the family should agree upon an employment policy so that both generations develop clarity around expectations and career path.
• Pride in legacy: Speaking highly of the business’s mission and achievements, while also encouraging children to gain a deep understanding of the industry, its competition, and its products creates a sense of belongingness.
• Soliciting opinions & participation: Engaging them in discussions and seeking their opinions on appropriate age decisions, builds a sense of ownership and critical thinking.
• Encouraging external exploration: Actively encouraging children to gain experiences outside the family business through internships or independent ventures broadens the world’s view beyond the family business.
• Accountability: A sense of pride in family legacy needs balancing with a strong emphasis on personal accountability, performance, and the understanding that positions must be earned through merit.
• A Cultural shift in language: Moving from “He’s the heir” to “He’s the most capable leader” changes the impact on how presence in the business is interpreted by the next generation. The former suggests entitlement and the latter emphasizes competence.

There is a delicate balance between pride in one’s heritage and the capacity to occupy a seat at the table. When family members rise through merit and not just lineage, the business truly pays homage to its founding values.