African Youth Poised to Digitize Family Firms, But Elders Hold the Reins Tight

Written By: Flipbz.org

Africa's family-run enterprises, the backbone of the continent's small and medium-sized business landscape, are on the cusp of a digital revolution—thanks to a wave of eager young heirs ready to steer them into the modern age. Yet, a new survey reveals a stubborn generational standoff that's keeping these innovators sidelined.

According to PwC's latest analysis, over 71% of the next generation—often dubbed "NextGens"—are deeply involved in their family operations, rolling up their sleeves on daily tasks and strategic brainstorming. But here's the rub: Fewer than 40% have been handed the keys to lead even a single project or initiative. These young trailblazers see themselves as the perfect "agents of change," brimming with plans to craft digital roadmaps, lure tech-savvy talent, and train staff in cutting-edge tools to boost efficiency and cut costs.

The disconnect? Current leaders, typically from the older guard, aren't buying in. Youth report mounting frustration as they clash with resistance, convinced they possess the skills to thrive at the helm but unable to sway the skeptics. This tension is amplified by fierce global competition, where multinational giants with deep pockets are encroaching on local markets— a trend especially acute in places like Kenya, where family firms are feeling the squeeze from international rivals.

Experts warn that ignoring this digital push could spell trouble. "Advances in technology and innovation are disrupting businesses across all industries, with the result that digital transformation has become necessary," noted Jenni Kitching, Associate Director at PwC South Africa's Family Business Division. "All companies will need agents of change. Based on our survey findings, NextGens are prepared to take on this challenge."

She highlighted the NextGens' bold confidence: "They understand the skills the family business most needs and believe they have what it takes to succeed at the top level. This powerful self-assurance may well be what is leading to disappointment and frustration as they struggle to convince the current generation."

With Africa's SME sector poised to fuel economic expansion, bridging this generational gap could unlock massive potential. By empowering youth to lead digital overhauls, family businesses stand to sharpen their edge in a fast-evolving world, ensuring they don't just survive but thrive against the odds.