Global Family Business Survey 2024

Unlocking family business legacy for sustainable growth

Global research by KPMG Private Enterprise and the STEP Project Global Consortium (SPGC) shows there is a strong link between the legacy of family businesses and their performance and sustainability.  

Drawing on a survey of more than 2,600 family-owned business leaders in 80 countries, Unlocking legacy – the path to superior growth in family businesses explores the nature of family business legacies and shares insights on how they can drive performance, sustainability and future growth.

The survey’s findings show that family businesses in Australia are well placed to capture these benefits and thrive as new generations step in. Key to achieving this is to view family business legacies through a future-focused lens as intentional and essential ingredients for sustainable growth.

How does legacy impact performance and sustainability in family business?

We surveyed more than 2,600 family business leaders in 80 countries.

0%
of family-owned businesses with high legacy scores experience high performance.
0%
of those with high transgenerational entrepreneurship experience high performance.
0%
of those with high legacy scores also score high for sustainability.
0%
of those with low legacy scores have high sustainability scores.
When a family-owned business uses its legacy strategically, it can drive performance and adaptability for future generations. It's the invisible thread that weaves through generations to become the enduring narrative of the business.

Understanding family business legacies

As a valuable family business asset, legacy can drive growth and performance by:

  • maintaining the strategic focus of the family and business
  • preserving family values
  • building a resilient culture
  • establishing reputation
  • passing on knowledge
  • ensuring continuity
  • strengthening emotional connections
  • adapting to change
  • guiding decision-making.

Depending on the nature of a family business’s legacy, it can either be a burden or an enabler. A family business that focuses on the material or traditional elements of its legacy can have lower levels of entrepreneurship and risk-taking – causing business growth and performance to suffer.

Future-centric family business legacies reach well beyond their historical foundations, enabling new generations to build upon the hard work of their founders. This requires a commitment to innovation and growth, anchored in the business’s core values, heritage and traditions.

Transgenerational entrepreneurship among younger generations can amplify family business legacies for sustained prosperity. The survey found that family-owned businesses with strong legacies and high levels of transgenerational entrepreneurship reported significantly higher financial and sustainability results.

Family-owned businesses can use the report to understand the strengths of their legacy and assess it across four different types: static, preservative, evolving and dynamic.

Each type differs by level of transgenerational entrepreneurship and legacy score. The highest percentage of small family businesses represented in the survey have static legacies.

The oldest family businesses often have preservative legacies. When a legacy is preservative, it is too entrenched in tradition and can stand in the way of innovation, adaptability and agility.

A more dynamic legacy can serve as a source of identity, inspiration and innovation, so the family’s business can embrace the future and achieve higher levels of performance across generations.

Moving a family business legacy from preservative to dynamic requires a culture that embraces both the heritage of the family and the progression of its business. This can be achieved through strategic innovation, flexible governance, next-generation leadership, legacy communication, entrepreneurial encouragement and succession planning.


Take the assessment

Applying the legacy matrix to your family business may be an important first step in assessing the strength of your legacy and how it may be impacting the performance of your business.

KPMG logoGlobal Consortium logo

The legacy matrix

Apply the legacy matrix to your family business by taking our 5 minute assessment.

High Low Transgenerational enterpreneurship (TE) Legacy Low High

The ability for family businesses to weave their legacy through generations is powerful as they pass down experiences, values and knowledge. Then it’s up to the next generation to leave their own mark by exploring new ideas that will take their legacy to another level.

Video: Unlocking legacy in family businesses

Unlocking legacy — The path to superior growth in family businesses
Balancing tradition and change for enduring success
Video Player is loading.
Current Time 0:00
Duration 0:00
Loaded: 0%
Stream Type LIVE
Remaining Time 0:00
 
1x
    • Chapters
    • descriptions off, selected
    • subtitles off, selected

      Discover how leading family businesses are balancing tradition and innovation to achieve superior business performance.

      Register to find out more

      Interested in discussing your legacy challenges and opportunities in your family business? Complete this form and one of our family business specialists will reach out.

      KPMG will collect your personal information you provide for your enquiry. By continuing with your enquiry you agree that KPMG may handle your personal information in accordance with the KPMG Privacy Policy.

      Talk with us about your family business

      KPMG can help you understand and grow the valuable legacy of your family-owned business to drive enduring growth for future generations.

      Also explore