Exposure to the Business

Among the families we spoke with where women ultimately took on leadership roles in the next generation, experiences with the business in childhood and adolescence tended to be similar across gender lines. Boys and girls were equally exposed to the business and its inner workings. In other words, there was equal inspiration within the family. Both boys and girls invested time with dad (where the father was the owner-operator) at the place of business, resulting in a common understanding and interest in the business. Providing equal inspiration to the next generation without regard to gender appeared to be a precursor to women joining the business and taking on substantive roles within it.

In many family enterprises where early exposure was more divided by gender, boys were offered jobs “in the business” – packing boxes, working on the line, in the field or in the factory. These jobs are often dirty, sometimes dangerous and male-dominated. Therefore, they were deemed “inappropriate” for young women. Where these barriers existed, boys and young men developed a deeper understanding of the family’s business fundamentals, as these jobs provided opportunities to learn the business of the family enterprise from the ground up. Conversely, for girls and young women in these situations, early work assignments revolved around support functions, answering phones, processing invoices or other types of administrative work. 

In the families we spoke with that successfully developed female leaders, girls were given similar opportunities to the boys. We heard stories of girls rolling up their sleeves – whether it be visiting mines or plants as children, moving boxes around the factory or selling cars on the floor of a dealership. Equal opportunity across all members of the next generation communicated the message that anyone could learn – and eventually lead – the family business. Creating different opportunities based on gender sent implicit (and sometimes explicit) messages that the paths and resulting opportunities differed for women and men in the family. 

College-age women were generally freer than their male counterparts to pursue whatever might interest them – in many cases, that was art or education – as the assumption was that marriage and homemaking, rather than a business career, might follow.

In a number of cases where women became leaders, they described their fathers as progressive, feminist or “ahead of their time” in relation to how the fathers viewed women and managed diverse employees.

In another conversation, Rebecca Jarvis, vice president of manufacturing and compliance at Jarvis Cutting Tools, didn’t immediately know why her father was so adamant in his view that she could be a leader in a male-dominated field and in a company where her much older brother was already successful. Following our conversation, she asked him and then emailed us the following:

Before my mother had said “yes” to getting married, she required my father to agree that any children, regardless of gender, would be treated identically in terms of the business. As my mom has nothing to do with the business and can barely explain even what the business makes, it was not a response I expected. She said that coming from her family of four girls with a father that expected them to all excel and have a career, how my fathers’ side of the family treated women (and wives) was not acceptable. Her explanation made a lot of sense since given her and her sisters’ job and career choices. Of her three sisters, two of them got master’s degrees, and both of those sisters worked for themselves running small companies they started. My mother went to nursing school and was a practicing registered nurse for years even after my brother was born.

Hearing the message “you are capable and have potential to be successful in this business” naturally led to more success. Conveying this message – through words, actions or gentle (often unconscious) nudges – to both genders equally creates inclusivity that allows diversity to flourish in the next generation of leaders.

In other families, mothers and grandmothers did not have a formal role in the business, but their ability to make and influence decisions was undeniable.

Given the importance of role models for women, expanding their understanding of what is possible and inspiring them to be more ambitious is crucial. In family enterprises, familial role models seem to have an outsized impact on women in the next generation.

This is consistent with what happens in families more generally, where a role model with similarities to the individual are most influential. As a result, women from the same family, raised with the same values, religion and culture, can be powerful pathfinders for the next generation of women.

The Lessons Learned

Regardless of the approach a family has taken historically to grooming the next generation of business leaders, opportunities exist to increase the representation of women – and diversity generally – in the leadership of family businesses. The most important first step is to be intentional. The cumulative impact of early life often encouraged or dissuaded the next generation of women.

To give everyone the opportunity to develop the interest and skills necessary to be successful in a business-owning family, inclusion must be a priority in the family and in the business. Family leaders must start by saying that they value diverse perspectives in the business and that every member of the next generation has the opportunity to prove that he or she can be a success. This sentiment might also belong in a family mission statement or guiding principles, or maybe it merits time on the agenda at the next family council meeting. In addition, consider the following:

• Provide opportunities for boys and girls to do a variety of jobs – both administrative, office work, manual labor and field work, as applicable – during adolescence and young adulthood for every member of the next generation. Some family businesses create a set rotation through different departments or types of work for family members.
• Model and value equity in family relationships. While seeing a true partnership in mom and dad’s relationship is clearly an important model for children, sibling and cousin relationships are also important. Instead of always giving leadership responsibility to the oldest, consider younger family members for age-appropriate opportunities, and allow quiet children to speak first.
• Keep the rules consistent, regardless of age and gender. If the owners don’t think family should work in the business or that everyone should work outside the company for a specific amount of time, communicate the same message to everyone – no special treatment for the first born.
• Rethink the family narrative. How do you tell the origin story of your family business? Is grandpa a brilliant entrepreneur who bootstrapped and grew the business without help? Consider how women and others might have contributed. Perhaps there is a more inclusive way to portray the family’s success.
• Elevate the stories and successes of women and other diverse leaders – in the family, in the company and in the community – to demonstrate what is possible and broaden horizons for everyone.

Thank you to everyone who participated in the research for this study and shared their experiences and stories with us. We are truly grateful for your time, insights and expertise.

This piece was originally published in October 2022.