It may seem that my professional impressions conflict with the common view that family businesses are the most resilient in an always challenging entrepreneurial environment. Yet based on experience, I increasingly observe the sale of family owned businesses in Croatia rather than their transfer to heirs. Why is that the case? This format does not allow for a detailed essay, so I will briefly list the dominant reasons as expressed by business owners themselves. Most often, they say: “My children do not want to continue this line of work, and I no longer have anyone to work with.” When translated into the language of psychology and business, it becomes clear that successors, meaning the younger, more educated and more globally oriented generation, do not want the same level of stress and sacrifice as their parents, which is entirely understandable.

Additionally, labor shortages across many industries, combined with a tendency to relocate in pursuit of better opportunities, salaries and environments, lead family employers to conclude that their business lifecycle is nearing its end, especially as age brings reduced flexibility in adapting to new realities.

It is interesting to note statistics showing that 43 percent of family owned companies have no succession plan, while only 18 percent actively involve their heirs in ongoing business operations. It should also be mentioned that the burden of running a long term business can sometimes disrupt family balance and relationships, so it is not surprising that there is a lack of motivation to inherit something that may have contributed to generational or sibling conflicts.