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IFB with UCG 13th National Conference
Encouraging innovation &
entrepreneurship in the
next generation
Jonny Wates, Wates Group
Ruby Paxton, First Habitat Group
Juliette Johnson, Juliette Johnson Consultancy
Guy Rigby, Smith & Williamson
In the beginning...
Every family business starts with either
• a great innovation
• a great entrepreneur
• or both
But as you move away from the founder,
does a family business lose that
entrepreneurial spark?
Questions for discussion
• How important is it to encourage entrepreneurship and innovation in the
next generation?
• What opportunities exist in and around your business to encourage
entrepreneurship in the next generation?
Can anyone give any examples of how they are doing this in practice?
How other families are encouraging entrepreneurship...
The ‘fish and chip’ fund
•
Fund was created for the family to co-invest in
solid business ideas from the next generation
•
Strict criteria and guidelines were agreed
•
Fund was built up over time out of the
dividends of the company
•
The family vision was to build a diversified portfolio
over time and to build a solid platform to support
the entrepreneurial ambitions of the next
generation
How other families are encouraging entrepreneurship...
Dragon’s den
•
Next generation were given £20k from the Family
Foundation to collectively agree to support a Social
Enterprise initiative
•
All the cousins were tasked with researching various
Social Enterprises, to pitch their ideas and then
collectively agree what they want to support.
•
In addition to the money, the next generation give 2
days a year to work together on a project linked to
their chosen Social Enterprise. Process is repeated
on an annual basis
How other families are encouraging entrepreneurship...
The enterprise challenge
•
A group of siblings were set a challenge by their
parents...
•
Each were given £5k and told to find the best way to
grow it over a 12 month period
•
The most successful was awarded a special trophy
but all were allowed to keep the profit they generated
•
This has now become an annual event for the family
and has driven some amazing entrepreneurial
activity
How other families are encouraging entrepreneurship...
Corporate problem solving
•
Every year, these next generation are taken to one of
the companies in their group
•
They meet with directors/senior managers and are
provided with an insight into that company
They are then given some background information
and presented with a specific problem which that
business is currently tackling.
In teams, they are tasked with working through the
challenge and formally present their ideas back
•
•
How other families are encouraging entrepreneurship...
Reverse succession
•
These next generation were supported and
encouraged to set up their own business alongside
and complimentary to the main family business
•
Once they had made it a success and proved their
capabilities, the two businesses were brought
together and the next generation took over the
running of the business
How other families are encouraging entrepreneurship...
Family internships
•
This family had 8 different businesses across 14
different countries
•
They built a structured 1-2 month internship
programme giving all next generation the
chance to experience different businesses in
different locations
•
All internships were project/challenge based
rather than based on more traditional functional
roles
How other families are encouraging entrepreneurship...
The ‘family university’
•
This family organised for their next generation
group of cousins to go away for 3.5 days.
•
2 days they spent having crash courses in areas
such as finance, marketing , branding etc... from
experts and academics
•
In groups, they were tasked with working
together on creating a business plan and
presenting it back to the family council
Some things to think about...
•
Real entrepreneurship can’t be taught but it can be nurtured...What can you be doing to encourage
your NxG to think and act more like entrepreneurs?
•
What opportunities are there to strengthen their connection to the business and get them more
involved in different ways?
•
Could a platform be built to support the aspirations and innovations of the next generation, either
within the Group or outside?
•
Have you got the right balance between structure/rules and encouraging individuality and creativity.
Does your governance support or stifle entrepreneurship?
•
To what extent do you encourage risk taking within NxG (albeit with some controls in place)?
•
Sometimes you learn more from failing than being a success.....
Are you giving your next generation the platform to try?