Business owners are concerned about the capabilities of the next generation to run their companies, research by Nedbank Private Wealth has found.

Its survey of business owners showed that while 75 per cent remained optimistic about their companies’ prospects over the next five years, personal and family issues were their primary concerns.

More than half (54 per cent) of UK entrepreneurs do not currently involve their children in the running of their business.

Of those who do involve their children, nearly a quarter (24 per cent) found it challenging.

Furthermore, 23 per cent of those who involved their family in the past said that it did not work out well.

Nedbank stated that these findings highlighted the “common issue” that the longevity of these companies was threatened.

It pointed to research by the Family Business Research Foundation that showed only around 30 per cent of family businesses survive the transition from first to second generation, while just 10 per cent make it to the third generation of ownership and management.

Of the survey respondents who did not involve their children in running their business, two thirds (66.6 per cent) said it was because they either lack the drive or are not capable, while 37 per cent felt they could not handle the challenges of running their company.

“As we navigate through an era of change, it is clear that the future of UK entrepreneurship hinges not only on economic stability but also on the successful transition of family businesses to the next generation,” commented Nedbank Private Wealth CEO, Stuart Cummins.

“It’s so important to work closely with families navigating this transition, getting under the skin of the concerns held by those passing on the mantle of the family business and balancing with the concerns of those stepping into the helm of UK family run businesses.

“Ultimately, we work with our clients and their advisers to consider the important transition of family businesses to the next generation.”

Nedbank Private Wealth executive head, wealth management, Simon Gibbons, added: “Succession planning goes beyond imparting the facts and figures of your business. Your children need to also inherit your drive and determination for the momentum to continue.

“Entrepreneurs often tell us they worry about the next generation’s readiness to lead, facing doubts about capabilities and complex family dynamics and our new research supports this.”

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