U.S. family enterprises are entering a period of profound structural transition. While confidence in the generational wealth transfer and family legacy and future vision is at an all-time high, family owners are actively preparing to hand over day-to-day operations to outside executives, according to the 2026 US Family Business Report from KPMG LLP.
While 91% of respondents expressed strong confidence in the next generation's ability to lead as owners and board members, only 36% expect family members to occupy most senior leadership roles over the next decade.
"The data challenges a traditional operating assumption that succession simply means passing every leadership role to the next generation," says Tracey Spivey, national practice leader for family enterprise, tax at KPMG LLP. "We are seeing a strategic shift from 'family run' to 'family governed.' Families are realizing that separating ownership from daily management means that the best person to grow the business, while keeping the values, reputation and long-term perspective that made it successful in the first place, may come from outside the family."
Key takeaways:
· Respondents cited attracting high-quality external talent as their top workforce challenge (39%), while 51% identified AI strategy and deployment as their largest organizational skills gap.
· While 86% of respondents are either piloting or scaling AI initiatives, only 40% have established a formal AI governance framework to oversee those efforts.
Only 36% expect family members to occupy most senior leadership roles over the next decade.
Attracting high-quality external talent is ranked as the absolute top workforce challenge.
73% are putting younger generations through on-the-job training, focusing on board-level governance rather than pure operations.
86% are currently piloting AI or have adopted it at scale.
51% cite AI strategy and deployment as their most severe organizational skills gap.
Only 40% have established a formal AI governance framework.
93% agree they have a clear, documented growth strategy for the next 5-10 years.
Shared purpose and family reputation are cited as the primary value drivers of the business, ranking ahead of pure financial capital.
