Your Voice Matters. Urge your representatives in Congress to extend and enhance the tax provisions of the TCJA.
New Study Says College Students Ponder ‘Legacy,’ ‘Succession,’ and ‘Generating Revenue’ When Considering Joining the Family-owned Business
But Family Communication Still Ranks High as Major Issue
This summer, as college students ponder whether to join or not join their family-owned businesses the big questions are “legacy,” “succession,” “generating revenue, and how to communicate with those family members in charge.
These questions and concerns all come from a new survey conducted in partnership with the Smith Family Business Initiative at Cornell University, Family Enterprise USA, and The Roberts Group.
In the survey, entitled “The 2025 Rising Gen Survey,” some 164 current students shared their perspectives and concerns as they relate to their family’s business.
The students were enrolled in family business or entrepreneurship courses and were asked what was most important to them as it related to their family business.
Students enrolled in these family business courses, mostly because their family owned a business, but also for their own personal interest in starting a business or being curious about family businesses generally. Some 63% are already working for or are involved with their family-owned businesses.
A large percentage of the students (81%) represent the second or third generation of the family business, with 24% being in construction and real estate, 15% in manufacturing, 12% in agriculture, and 10% in retail.
Some students have skin in the game, at least for the moment, but most do not.
The survey found nearly 34% students said they “Have an ownership stake” in their family business, while 46% “Did Not, and 20% were “Unsure.”
Not surprisingly, communication within the family, or lack thereof, was a top issue, but two other top issues were “legacy” and “succession.”
The “Rising Gen” survey found for the second straight year that the word “legacy,” with its multiple connotations, was the word most associated with family business, while “succession” was also top of mind among the students.
But consistent with the 2024 results, one the biggest ongoing fears students have is, can they “Generate Revenue.” This ranks as the No. 1 worry at 17.4% of students citing this, and similar percentage to last year’s results.
Next came, “Remaining Competitive” and “Succession Planning,” both coming in with 12% of responses, though last year these categories were higher at roughly 17%.
This is a natural expression, the fear of letting down parents and family members, of failing. It is also an expression of the fear of not knowing.
Afterall, the survey also found that 60% of the family businesses did not have a “Succession Plan” or “Board of Directors,” and nearly 70% did not have a “Family Constitution.”
The solution is family communication and understanding the basics of the business, also revealed in the data and in anecdotal comments throughout the research.
Beside the “Revenue Generation” worries, the next set of concerns cited were succession planning, sustainability, ownership structures, and “being qualified.”
Perhaps the most revealing insights came when the survey asked students the open-ended question: “If you had the courage to ask their parents/grandparents any questions about the family business.”
Certain responses were tied to operations, such as, “How did our business start?” and “Why can’t we shift toward more professional operations?”
Yet, certain responses exposed topics that families often have difficulty engaging with, such as wealth, expectations, and family relationships.
This brought up other tough questions among students, such as: “What is our net worth?” “Is it worth continuing this business?” and “Do you want my other siblings in the business?” “Are my skills strong enough?”
These basics are a good place to start the communication process around the family dinner table.
It’s a good place to end confusion about ownership, responsibilities, and skills sets needed to continue a thriving family business and for the “Rising Gen” to take charge into future.
To see the full study, go to: Family Enterprise USA Research.
We hope you've enjoyed this article. While you're here, we have a small favor to ask...
As we prepare for what promises to be a pivotal year for America, we're asking you to consider becoming a member.
The need for fact-based reporting of issues important to family owned businesses and protecting a lifetime of savings has never been greater. Now more than ever, successful families and family owned businesses are under fire. That's why Family Enterprise USA is passionately working to increase the awareness of issues important to family owned businesses built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates, possible elimination of valuation discounts, increase in capital gains tax, enactment of a wealth tax, and the continued burden of the gift tax, estate tax and generation skipping tax.
Family Enterprise USA promotes generationally owned family business creation, growth, viability, and sustainability by advocating for family businesses and their lifetime of savings with Congress in Washington DC. Since 2007, Family Enterprise USA has represented and celebrated all sizes, professions and industries of family-owned enterprises and multi-generational employers. It is a bi-partisan 501.c3 organization. Family foundations can donate.
#incometax #CapitalGainsTax #R&DExpensing #DontPunishSuccess #GrantorTrusts #StepUpinBasis #likeKindExchanges #AcceleratedDepreciation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #incometaxrates #repealestatetax #AdvocatingForFamilyBusinesses #FamilyOwnedBusiness #WomenOwnedBusiness @FamilyEnterpriseUSA #FamilyEnterpriseUSA