{"id":3639,"date":"2021-04-21T10:04:40","date_gmt":"2021-04-21T09:04:40","guid":{"rendered":"https:\/\/escp.eu\/thechoice\/?p=3639"},"modified":"2021-10-05T16:12:26","modified_gmt":"2021-10-05T14:12:26","slug":"entrepreneur-from-father-to-son","status":"publish","type":"post","link":"https:\/\/escp.eu\/thechoice\/tl-dr\/entrepreneur-from-father-to-son\/","title":{"rendered":"Entrepreneur, from father to son?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">You may have heard the famous saying about family businesses, which Henry Mintzberg <a href=\"https:\/\/mintzberg.org\/blog\/family-business\">quotes on his TWOG<\/a> (TWeet2blOG): <strong>\u201cthe first generation makes it, the second generation sustains it, the third generation blows it.\u201d<\/strong> This phenomenon is sometimes referred to as the <a href=\"https:\/\/www.theguardian.com\/lifeandstyle\/2011\/oct\/01\/great-dynasties-buddenbrooks-effect-ian-sansom\" target=\"_blank\" rel=\"noreferrer noopener\">&#8216;Buddenbrooks effect&#8217;<\/a>, after Thomas Mann&#8217;s novel, which tells the story of the decline of the business of a wealthy German family over four generations. <mark>This entrepreneur\u2019s curse is actually quite common<\/mark> and, from Seagram (whose story Mintzberg recounts) to Smoby, <strong>there are countless examples of successful companies that have been brought to ruin by incompetent heirs<\/strong>.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Like playing Russian roulette with 5 bullets in the 6 cylinders<\/p><\/blockquote>\n\n\n\n<p>As the Canadian academic and author on business and management points out, it is always surprising to see how <strong>talented, often insightful, sometimes brilliant entrepreneurs are totally blinded when it comes to choosing their successors<\/strong>. While it is understandable that they are looking to ensure the continuity of their business and the legacy of their estate, <strong>they often make the mistake of assuming that their own children will be the best ones to take over<\/strong>. \u201cThis is like playing Russian roulette with 5 bullets in the 6 cylinders\u201d, he adds.<\/p>\n\n\n\n<p>According to some studies, <mark>entrepreneurship is a family affair, but not a matter of heredity<\/mark>. Entrepreneurs often have another entrepreneur in their family, be it an uncle, father-in-law or cousin, who serves as a role model. <strong>It seems to be more difficult to start a business if you come from a family of employees<\/strong>, where nobody has ever taken the entrepreneurial step.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Entrepreneur, de p\u00e8re en fils...adoptif [Fr\u00e9d\u00e9ric Fr\u00e9ry]\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/BP1ZnlNxlEE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>On the other hand, as <a href=\"http:\/\/www.jstor.org\/stable\/2776205?seq=1#page_scan_tab_contents\" target=\"_blank\" rel=\"noreferrer noopener\">a study<\/a> quoted by Mintzberg suggests, <strong>entrepreneurs often come from homes where the father is weak, self-effacing or even absent<\/strong>. \u201cPerhaps the son becomes the surrogate father at home, strong and responsible &#8211; not bad traits for an entrepreneur.\u201d<\/p>\n\n\n\n<p>There are, of course, the cases of Steve Jobs, who was abandoned at birth, Luciano Benetton, who was orphaned at the age of fourteen, and Jeff Bezos, whose parents divorced when he was three.<\/p>\n\n\n\n<p>Naturally, <strong>there are exceptions<\/strong> and you can find examples of entrepreneurs raised in families where fathers were present, such as Bill Gates, Bernard Arnault or Mark Zuckerberg.<\/p>\n\n\n\n<p>However, if the rule of the absent or failing father exists, according to Mintzberg <mark>the best question to ask an entrepreneur who wants his son to take over is certainly \u201cWas your father a great businessman?\u201d Often not. \u201cSo what makes you think your son is?\u201d<\/mark><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>The best solution is certainly to choose a successor from outside one&#8217;s own descendants<\/p><\/blockquote>\n\n\n\n<p>Indeed, just as successful entrepreneurs are often motivated by a desire to take revenge on life, due to the material or psychological conditions of their childhood, <strong>their heirs are by definition born into a much more affluent environment, with a future all mapped out for them<\/strong>, which does not \u201cnecessarily bestow the ingenuity and energy necessary to run a vibrant company.\u201d<\/p>\n\n\n\n<p>Moreover, faced with the inability of their children to ensure their succession properly, <strong>many entrepreneurs continue to invest in their business far too long after the legal retirement age<\/strong>, which inevitably leads them to enter into conflict with their heirs, to the point of jeopardising the smooth running of the business.<\/p>\n\n\n\n<p>Therefore, to avoid the entrepreneur&#8217;s curse, <mark>the best solution is certainly to choose a successor from outside one&#8217;s own descendants<\/mark>. Like Roman emperors, who found a clever subterfuge: they adopted their heir rather than appointing their biological son\u2026<\/p>\n\n\n\n<p><strong>This review was previously published in French by <\/strong><a href=\"https:\/\/www.xerficanal.com\/strategie-management\/emission\/Frederic-Frery-Entrepreneur-de-pere-en-fils-adoptif_3749230.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Xerfi Canal<\/strong><\/a><strong>.<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<p><\/p>\n\n\n\n<p><em>This post gives the views of its author, not the position of ESCP Business School.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prof. Fr\u00e9d\u00e9ric Fr\u00e9ry comments on a publication by Henry Mintzberg who admittedly is \u201ca fan of family business, if only it could resolve its problems of succession\u2026\u201d <\/p>\n","protected":false},"author":6,"featured_media":3640,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15],"tags":[18,113,42],"class_list":["post-3639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tl-dr","tag-entrepreneurship","tag-family-business","tag-leadership","category-15","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Entrepreneur, from father to son? 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