Owners of family firms around the world are increasingly sceptical that their snowflake kids are up to the job of running the business.

PwC’s NextGen Survey canvassed the views of c.1,000 next generation members in family businesses across 68 territories, as well as their parents.

PwC defines NextGens as individuals of all ages who are in line to be the future owners of a family business.

Of the NextGen cohort, only four out of ten say they are more committed to the business than they were prior to the pandemic, according to the PwC research. 

“The uncertainty created by the pandemic also appears to have made the current generation less likely to relinquish control and more difficult for NextGens to establish themselves,” the reports states. 

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The research found that only 28% of NextGens are given significant internal operations to run, compared to 48% in the corresponding 2019 survey. 32% say they are used as a sounding board, down from 36% in 2019, and 45% of NextGens find it difficult to prove themselves as a new leader or board member. 

Reluctance of some of the current generation to provide a seat at the table poses a particular challenge for NextGens, according to 57% of those surveyed.  Further, four out of ten NextGens say there is resistance within the business to embrace change.

Business owners are sceptical about the need to upend their business to pursue sustainability objectives, the research indicates.

Only half of the current generation of business owners believe their business has a responsibility to fight climate change and its consequences, compared to the nearly three-quarters of NextGens. 

Seasoned family firm owners are also sceptical of digital transformation hype. One in three NextGens say the current generation does not fully understand the opportunities and risks for digital within their business. 

PwC says the survey participation rate for Ireland was too small to allow for individual statistics, though based on experience it expect the trends in this survey to be similar in Ireland.

PwC partner John Dillon commented: “The survey confirms that addressing sustainability and climate change ambitions are high on the NextGens' agenda, but more action is needed to fully embed sustainable practices right across their businesses.

"While NextGens clearly see sustainable business practices as integral to long-term success, the survey shows they need to step up their engagement in the near term. Only one in four are currently engaged in increasing the focus on sustainability and impact.  Similarly, just a quarter of NextGens say they are presently engaged in reducing their business’ environmental impact."