The Global Family Business Report: Embracing Tradition and Innovation for a Dynamic Legacy
The Global Family Business report from KPMG Private Enterprise and the STEP Project Global Consortium reveals how some successful business families adopt a future-centric view of legacy that binds generations together, creating dynamic legacies that adhere with tradition while simultaneously embracing innovation.
Overcoming the Legacy Paradox
The report provides insights that reveal many business families are overcoming the ‘legacy paradox’ — the trade-off between being a source of identity and inspiration versus a liability if so entrenched in tradition it stands in the way of innovation and change.
Insights from Top Family Business Leaders
The report brings together personal insights from the experiences of top family business leaders combined with data on the impact of family legacies on their business performance gathered from 2,683 family businesses across 80 countries, territories, and regions – including 114 respondents from Saudi Arabia.
The Role of Legacy in Family Business Success
The survey data revealed that 78 percent of respondents in Saudi Arabia reported strong incorporation of legacy into their family business, leading to high sustainability scores and strong business performance. Legacy alone may be insufficient for long-term success, emphasizing the importance of transgenerational entrepreneurship.
Embracing Legacy for Future Success
The report emphasizes how important it is for family businesses to embrace their legacy and share it with future generations. Legacy is a process, not a final outcome, and must be adapted to remain relevant and resilient in a changing business landscape.
The Future-Centric Perspective
The report takes a closer look at the true essence of legacy in today’s world, where tradition and innovation co-exist. Legacy must focus on the future to contribute positively to business performance and sustainability across all aspects of the business.
Dynamic Legacies for Maximum Business Outcomes
The study indicates that while regional similarities exist, data points vary across regions due to the influence of transgenerational entrepreneurship. Legacy alone is not enough — dynamic legacies are essential for maximizing business outcomes and staying competitive in a rapidly evolving market.
