KPMG – Family Business Report, 2024

Legacy plays a crucial role in the sustained growth of family businesses, connecting generations and shaping long-term vision. The STEP Project Global Consortium and KPMG Private Enterprise report, based on a survey of 2,683 family business leaders, highlights the link between a strong legacy and long-term business performance. However, while legacies provide identity and inspiration, they can also hinder innovation and change, creating a "legacy paradox" that family businesses must navigate. The report emphasizes the importance of balancing traditional values with modern business strategies to build a legacy for future generations. Key takeaways include the value of a family's legacy in contributing to business performance and sustainability, the role of legacies in strategic decision-making, and how strong legacies foster socioemotional wealth and transgenerational entrepreneurship. It also warns of the potential pitfalls of entrenched tradition, which can turn legacies into liabilities if they impede innovation.