If a business is committed to creating value, it must invest in new lines of business and cultivate broader expertise inside and outside the company, according to a Harvard Business School Working Knowledge paper by professor John A. Davis.
From perspective of the business, today's environment rewards agility: as certain lines of business wane, companies must be able to identify new opportunities (inside and outside of their current sectors) and pursue them in experimental, cost-effective ways.
Families that want to stay in business for another generation don't have a choice except to encourage entrepreneurship in and out of their company."
However, Davis argues that entrepreneurship is even more important for the family. Entrepreneurial families are more successful over many generations than others because they diversify their business interests, invest in future capabilities, and encourage family cohesiveness.
-- Bruno Roche