A new working system is needed…
Amidst new international uncertainties, 2017 brings forth a new reality for entrepreneurship within businesses world wide. This reality is no different for entrepreneurial families; the challenges faced by the rising generation and the need for new resources for existing owners, is creating the need for a new working ecosystem.
Around the world, 30% of private business owners are looking to retire before 2023 – however, only 5% of the rising generation is interested in taking over those businesses in their current state. Being an entrepreneur and a business owner simply means something different to the rising gen and the businesses their parents once ran may not be quite as appealing as following their own passions.
Unfortunately, if ownership is not secured for these businesses, there is a lot at stake…
In Canada alone, the retirement of baby boomers represents an estimated 1.9 trillion dollars in business assets that will change hands, affecting 3.5 million jobs and 27% of GDP. Entrepreneurial families have a similar impact in countries all around the world and so the transition of ownership from one generation to the next is a topic of utmost importance.
Knowing that the priorities of these two key generations are not aligned, what kind of working ecosystem could possibly provide hope for a stable future of family enterprise worldwide?
Intrapreneurship: a new way for two generations to work together
Intrapreneurship is an alternative to traditional succession offering the next generation an opportunity to lead their own project, while developing both managerial and ownership skills. This approach allows two generations to join forces together to drive forward new projects while maintaining healthy ownership and the stability of businesses and the communities and economies to which they contribute.
The next generation has a chance to lead new and innovative projects for which they are passionate and can benefit from shared resources and support from their existing family business that is willing to support them. Their projects might be related to the core business or might a complete ‘spin-off’. Not only can new value be generated by the hard work of the rising generation, but also at the end of the day, ownership is planned and transferred smoothly between generations to the benefit of the family, the business and all related stakeholders.
An advocate for intrapreneurship within family businesses
In 2016, Business Families Foundation (BFF) in partnership with the Caisse de Dépôt et Placement du Québec (CDPQ) developed a pilot project in Quebec around intrapreneurship. BFF was determined to sensitize family businesses with informative tools and resources, so that they could learn about the value of intrapreneurship for their families and their businesses. BFF also developed an interactive blended-learning program that allowed Intrapreneurs and their mentors to develop their own innovative project with the guidance of experts and facilitators. Through the willingness of family businesses in Quebec, the Parcours Intrapreuneurial was launched as a pilot program in French and was tremendously successful. It will be reopening the program for a second group this Spring.
Next steps for the Intrapreneurial Initiative
With such a positive start in 2016 with the French pilot project in Quebec, BFF is proud to expand its experience and knowledge globally so that YOU too can be part of the new generation of Intrapreneurs and mentors to support them! Business Families Foundation has launch an English version of the Intrapreneurship platform where you can find content and resources for your family and your business.
You can check the website HERE.
Check out the video below if you are interested in getting a glimpse of our first intrapreneurs in BFF’s blended learning program.