Across the United States, many immigrant-led, family-owned businesses are approaching a critical juncture: generational transition. Founded through years of effort, these companies now face questions about who will carry them forward, and whether they will survive once the original owners step back.
Although immigrants make up just over 13.6% of the U.S. population, they account for nearly 25% of business ownership, according to recent figures. These businesses often serve as fixtures in their communities, providing not only jobs and services but also a sense of continuity and identity.
Succession planning is still a major concern for many family-owned businesses. Most of these companies were started by first-generation entrepreneurs who built them from the ground up. Now, as these founders grow older, many are preparing to step down. However, their children often have different career goals and have since pursued careers outside the family business. This creates a serious challenge when it comes to finding someone to take over. Without a clear plan for who will lead the company next, the future becomes uncertain. In some cases, this can lead to confusion, conflict, or poor decision-making. Some businesses may be forced to sell, while others might shut down completely. This puts jobs, family legacies, and community support in jeopardy.
Ankit Shrivastava, Founder & Managing Partner of Enventure, a U.S.-India private equity firm, believes that this gap in planning has long been overlooked. “Immigrant-led family businesses are the backbone of many communities, yet often overlooked by traditional private equity. Our job is to see these businesses not just as financial opportunities, but as legacies worth preserving,” he says.
Some firms are choosing a different approach when working with family-owned businesses. Rather than focusing on quick profits or major restructuring, their goal is to strengthen operations, ensure business continuity, and respect the legacy of the founding families. These investors prioritize long-term partnerships and collaborative ownership structures over short-term profits or major restructuring. This approach often involves aligning with the founders’ goals, introducing technology where it adds value, and considering the cultural and community impact of business decisions.
Discussions about succession can be sensitive, particularly in families where the business is closely tied to identity and history. In some cultural contexts, the topic may be avoided altogether. Owners may assume family members will eventually take over or may delay planning due to emotional and interpersonal complexities.
Without a plan, however, businesses can find themselves unprepared when the founder retires, experiences health challenges, or simply decides to step away. The lack of a successor can leave employees, customers, and communities in limbo.
To navigate these transitions, more family-owned businesses are beginning to explore options that allow them to grow sustainably while preserving their core values. This can include gradually bringing in outside leadership, formalizing internal processes, or seeking guidance on governance and long-term planning. In some cases, third-party advisors or investor-partners can help professionalize operations while still honoring the founder’s original mission.
One key area of focus is knowledge transfer. Many of these businesses rely heavily on the founder’s personal networks, operational expertise, and decision-making instincts. Without systems in place to capture this institutional knowledge, transitions become harder.
At the same time, there is a growing recognition that leadership does not have to stay within the family to protect a company’s legacy. Bringing in experienced professionals who understand the business’s values and community role can sometimes offer the best path forward. The key is in finding leadership that respects the company’s roots while helping it adapt to new challenges.
Technology also plays a role. Digital tools can modernize operations, improve efficiency, and make succession more manageable. From accounting systems to customer management platforms, the right technology can reduce reliance on any one individual and provide greater transparency during a leadership handoff.
Ultimately, thoughtful succession planning isn’t just about protecting a business, it’s about preserving the social and economic contributions that immigrant-owned enterprises make to their communities. By planning ahead and embracing collaborative approaches, these businesses can continue to thrive across generations, creating lasting impact far beyond their bottom lines.
