Young Canadians Embrace Family Businesses in Historic Ownership Shift

Ben Hertzman’s family packaging business was always part of his life, but he initially pursued a career at Procter & Gamble before joining Progress Luv2Pak in 2017. Now CEO, Hertzman has expanded the business with a new factory, Gather Packaging, reflecting a broader trend in Canada where family businesses are increasingly attracting younger generations.

Family businesses account for 63% of Canada’s private sector enterprises, contributing significantly to the economy. Over the next decade, six in 10 of these businesses are expected to change hands, marking the largest transfer of ownership in Canadian history. Peter Jaskiewicz of the University of Ottawa emphasizes the importance of these businesses to the national economy.

Contrary to the old belief that younger generations are reluctant to take over family businesses, recent surveys show that 95% of family members under 45 consider it important for a family member to lead the business, compared to 65% of those over 45. Economic uncertainty and a tough job market may be driving this shift, as younger generations see family businesses as opportunities for purpose and influence.

Linley McConnell, who joined her family’s dry-cleaning business after working in consulting and public relations, leveraged her experience to innovate and expand the company. Ben Murphy, now CEO of Murphy Hospitality Group, credits his father’s thorough succession plan for the company’s growth into new industries like wellness tourism. Experts suggest that proper preparation and support are key to successful business transitions.