‘Communication,’ ‘Succession,’ Top Worries Family Business Heirs Voice in New ‘Rising Gen’ Survey from Cornell University

Smith Family Business Initiative at Cornell University, Family Enterprise USA, and The Roberts Group Survey Students in Family-owned Businesses

The “rising generation” of family-owned business leaders say family communication, succession, and generating revenue are their top worries when it comes to their family’s business, according to a new survey from Cornell University.

The Cornell survey, entitled “The 2025 Rising Gen Survey,” questioned 164 current students on their shared perspectives and concerns as they relate to their family’s business. The students, enrolled in family business or entrepreneurship courses, were asked what was most important to them, what worried them, and what they want from their family business leaders. 

The survey was conducted in partnership with the Smith Family Business Initiative at Cornell University, Family Enterprise USA, and The Roberts Group. The first “Rising Gen” survey was conducted in 2024.

Not surprisingly, communication within the family, or lack thereof, was a top issue, but other top issues were “generating revenue,” “legacy,” and “succession.”

The study found 63% of the students were already working for or are involved with their family-owned businesses and a large percentage of the students (81%) represented the second or third generation of the family business. As for industries, 24% were in construction and real estate, 15% in manufacturing, 12% in agriculture, and 10% in retail.

Previous research shows America’s family businesses, the largest private employer in the country, account for 83.3 million jobs in some 32 million family businesses across the country. These businesses contribute $7.7 trillion annually to U.S. gross domestic product, according to research.

Ownership Stakes

The survey found nearly 34% students said they “Have an ownership stake” in their family business, while 46% “Did Not,” and 20% were “Unsure.”

The “Rising Gen” survey found the word “legacy,” with its multiple connotations, was the word most associated with their family business, while “succession” was also top of mind among students.

Consistent with the 2024 results, one big fear students have is, can they “Generate Revenue?”  This ranks as the No. 1 worry at 17.4% of students citing this, a similar percentage to last year’s results. 

“A few things have become clear as we conclude the second year of this study,” said Daniel Van Der Vliet, the John and Dyan Smith Executive Director of the Smith Family Business Initiative at Cornell University, and co-author of the study. “There is still a wide gap between what this rising generation of students knows about their family business, and what is shared with them by the senior generation,” he said. “And communication remains key for all involved in the family enterprise. It is important to not only share what the history of the business and family is, but also to craft what that future might look like with those it will impact most.”

Future Planning

When students were asked about “Remaining Competitive” and “Succession Planning,” both came in with 12% of responses as key concerns, though in last year’s survey these categories were higher at 17%.

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.”

Beside “Revenue Generation” worries, the next set of concerns cited among students were succession planning, sustainability, ownership structures, and “being qualified.” 

One of the more 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.”

Responses were tied to operations, such as, “How did our business start?” and “Why can’t we shift toward more professional operations?”

Other anecdotal responses exposed topics 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?”

Nearly 50% of students indicated their family does not have a family council, and 45% have no family constitution, employment policy, or formal board, the survey found.

“This is the kind of research helps us understand some of the core transition issues the next generation of family business leaders are facing,” said Pat Soldano, President of Family Enterprise USA and Policy and Taxation Group, survey sponsors. “Family communication is a main barrier to effective family-owned business transition, and this always comes up as a top issue,” Soldano said. “It’s important today’s leaders begin the conversation, so the rising generation has a full understanding of their future role in the business.”  

Family Enterprise USA and Policy and Taxation Group educate and advocate on behalf of family-owned businesses, family offices, and successful families on tax and economic policy issues with Congress.

For more information on the “Rising Gen” Survey, go to: www.familyenterpriseusa.com.

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