It is heart breaking when I meet family businesses that suffer because the next generation was ill prepared to lead the family business. Family business should give priority to well prepare their next generations as potential successors for operational or board roles within the family business. Educating the next generation on family business matters is complex for both senior and next-generation family members. The list of activities that help shape and prepare the next generation can be very long.

As per survey done with 160 family businesses by EMCS and the Malta Chamber and published early this year, it is clear that family businesses in Malta are realising about the importance of having owners and directors trained in how to lead the family business.

Research clearly indicated that while establishing a family culture that nurtures exchange between generations is a step in the right direction, it is certainly not enough. Families also need to find ways to pass on their rich knowledge and heritage to the next generation while motivating them to learn about business matters. This is not a one-way-exercise. It requires commitment from both the older and younger generations.

Research keeps indicating that educating the next generation about family business matters can be one of the key ingredients to strengthen the bonds between the family and the business. This helps build a sustainable long-term vision for future generations and creates a platform for sharing experiences within the family. Having a strong education in family business matters helps the individual shape and develop a personal vision and identity as a future family business owner.

Furthermore, three equally important dimensions need to be taken into consideration.

The first dimension is with regards a general understanding about what a family’s business activities are, together with an overview of performance, innovation, marketing, finance and social responsibility. This is important for next generation family members in order to grasp the environment the family business is operating in.

The second dimension is a deeper understanding of business issues and challenges. This will provide the younger generation with awareness of the family business dynamics and the pressures of being an owner of a family business. Becoming aware of potential pitfalls and the many diverse ways to approach succession, governance and communication is a way to establish an educated discussion within the family and to make the right choices. There are many different options for planting the seeds to grow a meaningful understanding of family business. It takes constant, yet well dosed watering to grow the seeds.

The third dimension is with regards the personal development of the next generation family owners. This is needed to prepare such next generation family members to add value as a future owners or managers. Thus the importance of providing the next generation with tools and experiences that help shape their talents and develop their skills while facilitating employability within and outside the family business. It is important to motivate the next generation to have the desire to contribute, to add value and to see the multiple options they have to make their dreams and aspirations become true. These activities can be formal or informal, individual or group exercises and help the next generation develop a secure base to assess the value they add to the family business.

As Oscar Wilde rightly put it “You can never be overdressed or overeducated” and I strongly believe that a large part of the long-term success of family businesses depends on the level of education the next generation receives and their eagerness to apply that knowledge.

It is for this reason that at EMCS Academy we have setup the the accredited course at MQF Level 5 – Award in Leading a Family Business. This unique course is ideal to help next generation family business owners and leaders to be well prepared at leading the family business. Click HERE to read about this Award in Leading a Family Business Course and to REGISTER. We will also help you gain funding for this course.