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How EY can help
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Accelerating growth for family-owned enterprises from one generation to the next.
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Notably, the rise of Gen Z is accelerating transformation at a faster pace than in previous generations. The 2024 EY Gen Z Live Work Play Study highlights the pivotal shift in generational attitudes. The Gen Z cohort is not only technologically adept but also financially astute, having grown up in an era of economic upheaval marked by the Great Recession and a global pandemic. These experiences have cultivated a generation of savers who understand how to make money, with 52% of Gen Z having multiple sources of income and a natural curiosity about financial security.
To bridge the gap between the generations and meaningfully engage with Gen Z, family enterprises can take three key actions:
1. Embrace a culture of transparency.
Family businesses must move beyond their long-standing commitment to discretion and privacy to meet Gen Z’s demand for transparency. This includes adopting artificial intelligence–driven tools that provide financial clarity and disclosure. Gen Z’s values of accountability, authenticity and financial openness align with artificial intelligence’s democratizing effect on information, helping family enterprises stay relevant and build trust across generations. By embracing this shift, family businesses can avoid conflict and create a more inclusive, forward-looking culture.
2. Invest in education and next-generation leadership development.
Gen Z is eager to be involved in financial governance and business strategy, but their interest doesn’t always equate to experience or knowledge. Family enterprises should invest in next-generation academies and tailored educational programs (administered, if possible, through a family office) that equip younger family members with the skills and understanding they need to lead effectively. This proactive engagement nurtures Gen Z’s entrepreneurial mindset while also preserving the values and long-term vision of the family enterprise.
3. Foster effective succession planning through clear communication and governance.
Succession planning is crucial to the longevity and sustainability of family enterprises. This involves establishing clear communication channels, creating robust governance structures and actively involving the next generation in strategic decision-making. A structured approach to succession, where younger family members are gradually integrated into leadership roles, helps mitigate conflicts and prepares them to carry the business forward. By aligning family dynamics with business leadership, family enterprises can foster smooth transitions and preserve the vision and values of the business across generations.
By implementing these strategies, family businesses can connect with Gen Z and remain relevant in a rapidly changing world. Through a combination of transparency, education and strong governance, they can pass down the wisdom of past generations while embracing the values of the future.
This article was originally published by FamilyBusinessMagazine.com in February 2025.