As trillions of dollars in family wealth and responsibility shift hands globally over the next two decades, family enterprises—including operating businesses, family offices, and family foundations—are approaching a defining inflection point. At the center of this transition is the Rising Generation—heirs poised to inherit not just capital and control, but the responsibility of carrying on the family’s legacy.
This shift is not merely financial. It encompasses business continuity, family cohesion, social capital, and the preservation of values. While many Rising Gens have spent years watching their elders lead with entrepreneurial flair or principled discipline, they are now being asked to step into roles that demand more than inheritance; they demand stewardship. And as stewards of capital, values, and community influence, the Rising Generation carries a responsibility that extends beyond the family—society depends on their leadership.
The future of family enterprise—and its influence on communities, capital, and culture—hinges on how well the Rising Generation prepares, positions, and ultimately leads. Their challenge is not to replicate the past, but to steward it by balancing reverence for legacy with a mandate for renewal, earning credibility, and navigating the emotional terrain that shapes multigenerational success.
| THE SCALE (AND STAKES) OF TRANSITION
According to a 2025 Cerulli report, nearly $124 trillion in wealth is expected to transfer between generations globally by 2048. Family enterprises, which are estimated to account for over 70% of global GDP, will be at the center of this generational shift.
Yet the statistics are sobering: according to studies, only 30% of family businesses survive into the second generation, 12% into the third, and just 3% into the fourth. While external forces like market disruption matter, the primary reasons for failure are internal: poor succession planning, lack of preparation, and unresolved family conflict.
This means the future of family enterprises rests not just on the founders’ vision but on how ready and willing the Rising Generation is to evolve that vision while keeping the family aligned.
| WHAT STEWARDSHIP MEANS TODAY
Stewardship has traditionally implied guardianship: preserving the family name, sustaining wealth, and ensuring continuity. But in a fast-moving world, stewardship must be redefined. For the Rising Generation, stewardship is active leadership, combining business acumen, emotional intelligence, and purpose-driven innovation.
"While many Rising Gens have spent years watching their elders lead with entrepreneurial flair or principled discipline, they are now being asked to step into roles that demand more than inheritance; they demand stewardship"
This requires:
● Earning the right to lead, not assuming it by birthright.
● Innovating with intention, while respecting core family values.
● Building influence across generations, not just among peers.
● Navigating governance structures and family dynamics.
As one second-generation leader put it, “Being a steward means bridging the past and the future - not just inheriting the baton but reimagining the race.”
As the definition of stewardship evolves, it’s also important to recognize that Rising Gens won’t all play the same role. Not every Rising Gen wants to work in the family enterprise, and that’s okay. Stewardship doesn’t always mean management (owner–operator). It means showing up as a responsible owner-investor by being informed, asking thoughtful questions, and helping guide the family’s vision. Whether involved daily or from afar, every Rising Gen has a role to play in sustaining the family’s legacy.
| THREE PATHWAYS TO EFFECTIVE STEWARDSHIP
Drawing from Rising Gen interviews and case experiences, three pathways consistently emerge as success factors:
1 Intentional Preparation
Preparation must be deliberate, not incidental, and should start early. Families that succeed in multigenerational transitions often invest in:
● Education tracks
Encouraging Rising Gens to pursue relevant degrees or certifications in business, governance, or industry-specific domains.
● Experiential learning
Providing structured roles in operating companies or family offices, mentorship with non-family executives, or opportunities to lead pilot projects.
● External exposure
Encouraging Rising Gens to work outside the family enterprise before joining—gaining independent credibility, broad perspective, and the chance to fail fast in real-world settings.
A Swiss family enterprise even designed a formal “onboarding curriculum” for next generation members—part MBA, part family history primer. The goal was not just to transfer knowledge but to shape mindset.
2 Collaborative Governance
Modern stewardship requires clarity in structure and inclusivity in process. Rising Gens can catalyze governance reforms that:
● Separate ownership from management.
● Define clear job descriptions and entry/exit criteria for family employment.
● Establish generational cohorts or working groups to voice future-oriented ideas.
● Rotate family leadership roles to promote shared responsibility.
One third-generation family in Singapore designed a “Generational Bridge Committee” composed of equal members from both G2 and G3. This group co-created the family’s next 10-year vision, ensuring legacy and innovation were both represented.
3 Purpose-Led Vision
Ultimately, stewardship is not just about “what” the family owns, but “why.” Rising Gens who thrive often articulate a renewed sense of purpose that resonates across generations.
For some, that purpose is social impact, for others, environmental sustainability or cultural preservation. Whatever the anchor, it must be authentic, shared, and adaptable to change.
At a 2023 Rising Gen summit hosted by a European family office, a participant reflected: “If the family can’t agree on why we’re doing this together, then no structure or succession plan will save us.”
Purpose is the compass during moments of tension or change. It also helps unify cousins and distant branches who may not share operational ties but can rally around a shared mission.
| EARNING CREDIBILITY IN A LEGACY ENVIRONMENT
Despite their qualifications, Rising Gens often face a credibility gap. They are sometimes seen as untested or entitled, especially in founder-led families.
To close that gap, Rising Gens must demonstrate:
● Competence.
Mastery of areas relevant to the enterprise, whether operations, digital strategy, sustainability or investing.
● Commitment.
Willingness to engage deeply, including in less glamorous roles.
● Character.
Alignment with the family’s values and the resilience to face adversity.
In one Southeast Asian manufacturer, a Rising Gen heir spent three years rotating through frontline roles, from factory floor to logistics. This immersive approach sent a clear message: she wasn’t asking for trust, she was earning it. When she later joined the board, her presence was not symbolic - it was strategic.
| NAVIGATING FAMILY COMPLEXITY
Perhaps the most complex part of a family enterprise is the family, not the enterprise.
Unspoken expectations, sibling rivalry, generational divides, and legacy trauma all make leadership deeply personal. Rising Gens must develop systems thinking, which is the ability to perceive the patterns, relationships, and emotional dynamics that shape decision-making.
One Latin American Rising Gen described her family council as “less a boardroom and more a therapy session.” She eventually trained in mediation and helped introduce protocols for communication and conflict resolution by ensuring decisions weren’t based on authority alone, but on shared understanding.
Formal governance, such as family constitutions or shareholders’ agreements, can help. But soft governance matters just as much: the cultivation of trust, psychological safety, and empathy across generations.
| BALANCING LEGACY AND INNOVATION
Many Rising Gens are eager to modernize their family enterprises, whether through digital transformation, ESG frameworks, or entry into new industries. Yet innovation can sometimes feel like rejection to the older generation. The key is reframing innovation as a continuation of legacy, not a break from it. This requires mutual respect and curiosity, each generation learning from and listening to the other.
Innovation can also extend beyond business strategy to governance, philanthropy, investing, and impact. Whether it’s implementing digital tools for transparency, launching a venture arm, supporting early-stage startups, or steering the family foundation toward measurable outcomes, the Rising Gen has the opportunity to broaden the family’s definition of stewardship.
For some, that stewardship takes the form of entrepreneurship. Launching a new venture—either independently or within the family enterprise—can be a powerful way to build on legacy while embracing change. Some families are even institutionalizing this mindset by creating dedicated entrepreneurship funds to back Rising Gen ideas. This creativity energizes the Rising Gen and keeps families relevant. This creativity energizes the Rising Gen and keeps families relevant.
| DIFFICULT CONVERSATIONS
Open and honest communication is the lifeblood of effective stewardship. Yet, it is often the most fragile element. In many cases, important conversations around succession, ownership, roles, and long-term vision are delayed or avoided entirely, masked by a desire to preserve harmony or respect generational boundaries.
Avoiding difficult dialogue may bring short-term peace but can lead to long-term dysfunction. Without open channels of communication, Rising Gen family members often find themselves operating with unclear expectations, inconsistent feedback, or unspoken assumptions about their place in the enterprise.
"Many Rising Gens are eager to modernize their family enterprises, whether through digital transformation, ESG frameworks, or entry into new industries. Yet innovation can sometimes feel like rejection to the older generation. The key is reframing innovation as a continuation of legacy, not a break from it"
| FROM SILENCE TO DIALOGUE
One of the most overlooked gaps in family enterprises is the mismatch between roles and responsibilities. Rising Gens may hold titles like board observer or family council chair, but without clarity on what success looks like, they struggle to build credibility or feel meaningfully included.
A key responsibility of the Rising Gen is to initiate conversations courageously, respectfully, and with a posture of curiosity rather than entitlement. This means proactively asking: What do you expect of me in this role? What does success look like? Where do you see gaps that I could fill? It also means being willing to share their own vision, values, and concerns, especially when they may diverge from those of the older generation.
Crucially, this is not a one-time conversation, but a recurring dialogue. As families grow more complex, with more stakeholders, branches, and geographies, the risk of miscommunication compounds. Add to this the emotional charge of legacy, identity, and control, and it’s easy to see why many families default to avoidance. But in today’s world, where stewardship demands adaptability and transparency, silence is no longer an option.
"Rising Gens may hold titles like board observer or family council chair, but without clarity on what success looks like, they struggle to build credibility or feel meaningfully included... a key responsibility of the Rising Gen is to initiate conversations courageously, respectfully, and with a posture of curiosity rather than entitlement"
| CREATING A CULTURE OF COMMUNICATION
Families that build strong communication cultures where questions are welcomed, conflict is surfaced and addressed, and generational differences are explored rather than suppressed are far more likely to thrive across transitions.
Creating a culture of communication requires intention. Structured tools, like family charters, governance documents, and formal role descriptions, can help set the stage. So can facilitated environments like retreats or intergenerational workshops, where Rising Gens and elders explore difficult topics such as succession timing, equity splits, or leadership expectations, without fear of judgment or escalation. Third-party advisors can also play a critical role in catalyzing these conversations and holding families accountable to their goals.
Even more powerful are families that embed regular check-ins or reflection points, where each generation can ask: Are we still aligned? What needs to change? What haven’t we said that needs to be said?
Ultimately, the courage to engage in difficult conversations is what separates fragile family systems from resilient ones. For the Rising Generation, initiating these dialogues is both a responsibility and an opportunity.
| WHAT FAMILIES CAN DO NOW
If families want to empower their Rising Gen stewards, here are three actions they can take:
● Start early
Engage Rising Gens before a formal transition is required. Late-stage succession invites resistance, not readiness.
● Invest in learning journeys
Support education, mentorship, and shared experiences. Multi-generational retreats or cross-functional projects can build trust and fluency.
● Create safe spaces
Allow Rising Gens to voice ideas, concerns, and aspirations without fear. This is especially critical in traditional cultures, where deference may suppress innovation.
"Even more powerful are families that embed regular check-ins or reflection points, where each generation can ask: Are we still aligned? What needs to change? What haven’t we said that needs to be said?"
| A MOMENT OF RISK AND RENEWAL
The global transfer of wealth to the Rising Generation is historic in scale, but it’s also a moment of vulnerability. If Rising Gens are sidelined, underestimated, or unprepared, families risk not only losing wealth, but cohesion, purpose, and relevance.
But if they are empowered to lead as stewards, with competence, clarity, and care, family enterprises can thrive for generations.
Rising Gens are not just heirs. They are builders, bridge-makers, and in many cases, re-founders. Their stewardship will determine whether family enterprises remain monuments to the past, or engines of the future.
The message to them is simple: keep it simple and get going.
Christina Wing
Senior Lecturer in the Technology and Operations Management Unit at Harvard Business School.
wingspanlegacy.com
