Supporting the next generation to be entrepreneurs is a valuable strategy to encourage innovation, personal development and commitment to family values and objectives. Through this initiative, family businesses can encourage young people to explore their passions and develop new sources of growth, both for the core business and to diversify family assets. With proper preparation, this approach can be a strategic investment in the family's future, balancing individual aspirations with collective goals.
Advantages of supporting next generation entrepreneurship
- Promotion of innovation
Encouraging young people to become entrepreneurs allows them to explore fresh ideas, emerging technologies and business models that could complement or diversify the activities of the family business. - Business skills development
Entrepreneurship helps young people acquire key skills such as leadership, problem-solving, decision-making, risk management and negotiation. - Diversification of family assets
New businesses can become additional sources of income and build resilience by diversifying the family's sources of wealth. - Reinforcement of commitment to family values
Starting businesses aligned with the family's values and vision strengthens the sense of belonging and responsibility toward the family legacy. - Preparation for leadership roles
Experience as an entrepreneur provides a solid foundation for young people to assume strategic roles in the family business in the future. - Attraction and retention of family talent
Supporting young people's personal projects demonstrates that the family values their individual aspirations, encouraging their long-term commitment.
Challenges of supporting next generation entrepreneurship
- Lack of experience or knowledge
Young people may lack the skills or experience necessary to start and run a successful business. - Conflicts with family strategy
The priorities of the new business may not be aligned with the family's objectives or values, creating tensions. - Financial risk
Investing in startups carries a risk of loss, especially if the project does not have a solid plan or is managed inefficiently. - Unrealistic expectations
Young people may underestimate the challenges of entrepreneurship, which could lead to frustrations or internal conflicts. - Resistance of older generations
Today's leaders may perceive entrepreneurship as a distraction from the core business or a threat to wealth.
How to prepare the family business to support entrepreneurship
- Foster an entrepreneurial culture
- Promote innovation and creativity within the family business.
- Recognize and reward initiatives that generate value, both inside and outside the core business.
- Provide education and training
- Provide training in key areas such as business strategy, finance, marketing, technology and risk management.
- Connect young people with internal or external mentors who can guide them on their entrepreneurial path.
- Create a family investment fund
- Establish a specific fund to support next-generation business projects, with clear evaluation and monitoring criteria.
- Define maximum investment amounts and conditions to ensure the sustainability of family assets.
- Establish an incubation or acceleration program
- Create an internal program where young people can develop and test their business ideas before formally launching them.
- Offer support in the form of resources, access to networks and strategic guidance.
- Define clear roles and expectations
- Communicate transparently how individual entrepreneurship relates (or not) to the family business.
- Establish clear limits on the use of family resources and the expectation of return on investment.
- Promote learning from failures
- Create an environment where failures are seen as learning opportunities, not a source of guilt or shame.
- Foster alignment with family values
- Encourage young people to undertake businesses in sectors that are aligned with the family's values and objectives, such as sustainability, social impact or innovative technology.
- Facilitate connections and networks
- Help young people build strategic relationships with potential partners, clients, investors and industry experts.
Trusted Family can play a vital role in supporting the next generation on their entrepreneurial journey within the family business.
The platform offers communication, governance and management tools that can address the challenges and maximize the opportunities of this initiative.
1. Provide access to educational and entrepreneurial inspiration resources
- Centralized knowledge repository
Trusted Family allows you to store and organize resources related to entrepreneurship, such as how-to guides, case studies, financial resources, and training videos. - Webinars and online workshops
The platform can facilitate the organization of webinars with entrepreneurship experts, where young people can learn about business development, innovation and risk management. - Inspiration through family success stories
Create a space within the platform to share stories of family members who have successfully launched a business, highlighting the lessons learned and their achievements.
2. Facilitate communication and collaboration
- Spaces for the exchange of ideas
Trusted Family offers forums and messaging tools where youth can present their ideas, receive feedback, and collaborate with other family members. - Networking with key partners
Use the platform to connect next generation entrepreneurs with mentors, investors and other relevant contacts inside and outside the family. - Meeting management
Organize specific meetings to discuss entrepreneurial projects, establish agendas and share related documents.
3. Promote transparency and governance in supporting entrepreneurship
- Creation of a family investment fund managed on the platform
Define and manage an entrepreneurship support fund with clear application, evaluation and monitoring criteria. Use Trusted Family to document and monitor all related decisions. - Project and progress log
Maintain a complete history of supported projects, results achieved and lessons learned, to inform future decisions. - Clear policies and guidelines
Share documents about the rules, limits and expectations for family members who want to start a business, ensuring that everyone is aligned.
4. Promote mentoring and intergenerational learning
- Connection with family and external mentors
Use the platform to pair young entrepreneurs with older family members or outside experts who can guide them in their projects. - Regular feedback sessions
Facilitate periodic meetings where young people present progress on their projects and receive guidance from more experienced members.
5. Support alignment with family values and vision
- Share family history and values
Trusted Family allows you to create and store an archive of the family's values, vision and mission, ensuring that entrepreneurial projects reflect the family legacy.
6. Promote resilience and learning from failures
- Document and share lessons learned
Use the platform to record failures and derived learnings, helping the family build a culture of resilience. - Spaces to reflect and improve
Create forums where young people can reflect on their experiences, receive emotional support and get ideas to improve their next steps.
Trusted Family is a strategic ally that supports the next generation on their entrepreneurial path. By providing tools for education, collaboration, governance and evaluation, the platform helps overcome the challenges of family entrepreneurship while fostering innovation, engagement and continuity of family legacy.