“The three-generation rule”
June 10, 2025Here is a link to an excellent article in which I was recently quoted, Beating the Family Business Odds, published by Chief Executive, an organization that publishes two quarterly magazines (Chief Executive and Corporate Board Member), produces multiple events, hosts four peer networks, provides research, and more.
The article provides valuable insights and also refers to what is commonly known as “The three-generation rule,” the widely held belief that only 12% of family businesses survive to the 3rd generation. While family businesses do face specific challenges that others do not, that “rule,” based on a 1980’s study, has been called into question.
If you are not already aware of this, you will find enlightening the Harvard Business Review article Do Most Family Businesses Really Fail by the Third Generation? The authors write that data demonstrates that the 1980’s study was flawed and that family businesses actually survive longer than many others. It’s a myth-busting article that you can read here .