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From a Business for a Family to a Family Business

The Second Generation: The Consolidators

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Entrepreneurs in Family Business Dynasties

Part of the book series: Management for Professionals ((MANAGPROF))

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Abstract

The second generation (G2) in this book is a very important generation because it is positioned between the founding generation (G1) and the third generation (G3), thus exposed to both migration and integration. To be in the middle requires a special skill in balancing the expectations and ambitions of the G1 and those of the G3. The G2 is a humble, patient, but determined generation. They are the consolidators. It is their role to consolidate and strengthen the business, guaranteeing its continuation, because it is usually at this point that family businesses disintegrate and collapse. As the business grows, the G1 reluctantly hand over the reins to the G2 who have been waiting to play a meaningful part in the continuation of the family firm.

This chapter concentrates on personal aspects related to the intergenerational transfer from the founders of the family businesses to the G2, including some of the G2’s reflections about succession to the G3. It explores the commitment of the successors to family business and examines the personal, family, and business values of the G2 members that continue to build on the solid foundation that they have inherited. The G2 demonstrate high levels of enthusiasm and energy, and a great degree of perseverance. These qualities, together with a willingness to take calculated risks, contribute to a successful generational evolution of the family enterprise. The personal cost of their unswerving commitment to the family business, however, is high in terms of time, energy, dedication, and compromises.

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Notes

  1. 1.

    Personal data such as date of birth and age of G2 members have been omitted to preserve the participants’ privacy.

  2. 2.

    Italian-Australians is a term used interchangeably with Italo-Australians. It refers to Australian-born of one or both Italian-born parents. The term may be extended to Italians who have arrived in Australia at a very young age because culturally and socially they feel an affinity to both countries. In the context of this book, the term Italian-Australian will be used.

  3. 3.

    Whereas 80 % of G1 male migrants from Italy who had lived in Australia for less than 10 years worked in the tradesman-processing industry category, only 41 % of Australian-born males of Italian parents followed this trend. Many of them have shifted into the professional and technical categories (Price, 1981, p. 4).

  4. 4.

    Baldassar and Pesman (2005) argue that the second and subsequent generations develop multiple identities: “Many young people explain that they are both Italian and Australian and a myriad other identities besides, including Veneto” (p. 170).

  5. 5.

    In 1998 La Trobe University awarded Rino Grollo its highest honour, Doctor of the University (honoris causa), for helping establish their Mt Buller Campus, and in 2007 the Australian Catholic University (ACU) awarded him a subsequent Honorary Doctorate in recognition for his “exemplary balance between business success, devotion to faith and family, charitable giving and community involvement in a career spanning four decades.” More information can be found on the following website: http://www.acu.edu.au/about_acu/news_events/media_releases/media_releases/archived/acu_national_to_award_rino_grollo_with_an_honorary_doctorate/, accessed 12 May 2010.

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  1. Study Connections, Melbourne, Victoria, Australia

    Laura Hougaz

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Hougaz, L. (2015). From a Business for a Family to a Family Business. In: Entrepreneurs in Family Business Dynasties. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-319-13918-0_9

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