Stepping into entrepreneurship is one of the bravest and most rewarding decisions you can make. But stepping into a role within the family business? That’s not just a leap—it’s an emotional, complex, high-stakes journey filled with both legacy and expectation.
If you’re a son or daughter considering whether to carry the torch and take the business your parent built to new heights, you’re not just exploring a career path—you’re exploring a family legacy.
You might be asking yourself:
Do I really want this? Am I even the right person for the job? Can I build on what my parent started and make it my own?
And if you’re a parent on the other side of that conversation, wondering whether your child has the entrepreneurial steps to take over, it can be just as uncertain. You’re not just thinking about the future of your business—you’re thinking about your child’s future, your family’s legacy, and whether your vision can live on.
This message is for both of you. Whether you’re navigating succession, considering stepping in, or figuring out what’s truly best for the next chapter, this is a conversation worth having—with eyes wide open, hearts grounded in truth, and clarity as your compass.
What Does It Mean to Be a Next-Generation Entrepreneur?
Let’s clear up a common misconception right away: just because you’re the child of an entrepreneur doesn’t automatically make you one. Entrepreneurship isn’t inherited like eye color or a family recipe. It’s not a title passed down like a crown. Being related to someone who built a business is not the same as being wired to build, lead, and grow one yourself.
Now, if you branch out and launch your own business, something totally separate from your family’s company—you are an entrepreneur. Pure and simple. Your last name or lineage doesn’t make you a second-generation entrepreneur. Your actions do.
So, what does it mean to truly be a next-generation entrepreneur?
It means stepping into the family business not just to preserve it, but to elevate it. It means bringing fresh energy, new ideas, and your unique vision to the table. A next-generation entrepreneur doesn’t just inherit a business—they transform it. They double its size. They modernize outdated systems. They lead it into new markets or reimagine the company for a new era.
It’s not about maintaining the status quo. It’s about honoring the foundation that was built—and then fearlessly constructing something even greater on top of it.
Being a next-generation entrepreneur isn’t about obligation. It’s about opportunity. And most importantly, it’s about having the right traits to rise to the challenge.
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The Truth About Entrepreneurial DNA
Let’s talk about something that might be a little hard to hear—but absolutely vital if you’re thinking about taking over (or passing on) a business.
Entrepreneurs aren’t made—they’re born.
That’s right. Despite what the motivational posters and Instagram quotes might say, you can’t train someone to be a true entrepreneur. You either have the wiring, or you don’t. It’s less about learned skills and more about natural traits—qualities that show up early, often before someone even knows what the word “entrepreneur” means.
There are six essential traits every real entrepreneur must have:
- Visionary: The ability to see a future others don’t and imagine what’s possible.
- Passionate: A deep belief in a purpose, product, or mission that fuels relentless effort.
- Problem Solver: A knack for navigating obstacles, finding solutions, and staying calm under pressure.
- Driven: A fire in the belly. A need to build, grow, improve, and push forward no matter what.
- Risk Taker: Comfort with uncertainty. The willingness to leap, even when the outcome isn’t guaranteed.
- Responsible: Owning outcomes. Not blaming, not making excuses—just stepping up and figuring it out.
You can’t teach these. You can’t fake them. And you certainly can’t force them on someone, especially not a child you love and want the best for.
If your son or daughter doesn’t have all six traits, putting them in charge of your business might feel like the right thing to do in the moment. But in the long run, it can lead to heartache—for you, for them, and for the people who depend on the business to thrive.
The most successful transitions happen when these traits are present. And if they’re not? That’s okay. There are plenty of other fulfilling paths out there, just don’t mistake legacy for destiny.
A Warning From the Front Lines
Too many family businesses fail when passed to a successor who doesn’t have the right traits. One client, a father, passed his business to his son despite clear signs the son lacked entrepreneurial drive. The result? Stagnation, indecision, and a frustrated leadership team. Every tough call was met with, “Let’s vote on it.” Growth stopped. Culture suffered.
As Kathy Kolbe and Amy Bruske write in Business Is Business, “We’ve seen family-owned businesses survive economic losses, fires, tornadoes, threats and deaths. We have never seen a family-owned business survive heirs who lack ambition.”
If You’re the Parent: Be Clear About the Role
Before naming your child as successor, consider this: are you looking for someone to maintain the business or to grow it?
- If you want growth and innovation, the successor must have all six traits.
- If you’re okay with maintaining the status quo, you can consider a child who doesn’t meet all six criteria—just don’t expect transformative leadership.
If Your Child Isn’t the Right Fit
That’s okay. The entrepreneurial spirit often skips a generation—or appears in unexpected places. Your successor might be a niece, nephew, in-law, or someone already on your team. Find the right person and put your child in a role that suits their strengths instead.
Why the Stakes Are So High
Taking over the family business might sound like a natural next step—but it’s not always easy, and the numbers prove it:
- Only about 1 in 3 family businesses make it to the second generation.
- Just 1 in 8 survive to the third.
- And only 3 in 100 make it to the fourth generation.
Why does this happen? It’s not because people stop caring or stop trying. It’s because keeping a business going from one generation to the next takes more than love or tradition. It takes the right kind of person to lead it.
A successful business needs someone with certain natural traits—like vision, passion, and drive. If the person taking over doesn’t have those traits, things start to slow down. The business stops growing. Important decisions get delayed. Eventually, the business might even fail.
That’s why choosing who runs the business next is such a big deal. Whether you’re the parent thinking about stepping back, or the son or daughter considering stepping in, this is about much more than keeping the name on the door. It’s about making sure the business keeps doing well for years to come.
In short: love and legacy matter—but so does having the right person in the right seat.
Two Key Pieces of Advice for Next-Gen Entrepreneurs
If you’re thinking about stepping into your parent’s business, there are two big lessons I’ve learned that can help you succeed—not just in the business, but in earning the respect of the people around you.
1. Prove yourself somewhere else first
Before I joined my family’s company, my dad gave me a challenge. He told me I had to first go out and achieve something big on my own. His goal? He wanted me to sell $5 million worth of real estate in one year. I did it—and looking back, that experience made all the difference.
Why? Because it built my confidence. I knew I had what it takes. And just as important, it helped the people in the family business see me as more than just “the boss’s kid.” They saw someone who had earned their place.
So before you jump into the family business, go build your own success somewhere else. It could be in a similar field—or something totally different. Either way, it shows you’re serious, capable, and ready to bring value.
2. Be ready to work harder than everyone else
Let’s be honest—when you’re the son or daughter of the owner, people are going to watch you more closely. Some may assume you’re only there because of your last name. That might feel unfair, but it’s just the way things are.
The best way to overcome this? Outwork everyone. Show up early. Stay focused. Do the hard stuff no one else wants to do. When your team sees that you’re willing to roll up your sleeves and put in the effort, they’ll start to respect you—not because of who your parents are, but because of what you bring to the table.
Taking over the family business can be an incredible opportunity. But to truly make it your own—and to lead it into the future—you have to earn it. These two steps are the best way to start.
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Final Thoughts: Legacy Is Earned, Not Handed Down
Taking over the family business is one of the most meaningful—and most challenging—paths an entrepreneur can walk. It’s not just about keeping the business alive. It’s about growing it, evolving it, and earning the trust of the people who built it and those who keep it running today.
If you’re the next in line, ask yourself honestly:
Do I have the six essential traits? Am I ready to lead, not just follow? And if you’re the parent, step back and truly assess: Is my child the right person for this role? Or are we better off putting someone else in charge and finding the right fit for my son or daughter elsewhere in the business?
Legacy matters—but it only lasts when it’s in the hands of someone truly equipped to lead.
Ready to Find Out If You—or Someone You Love—Has What It Takes?
Take the free Entrepreneur-in-the-Making Assessment at e-leap.com. It’s quick, clear, and could save you years of heartache—or open the door to your next big leap.
