Family businesses face unknown
Jon Manchester - Jan 30, 2023 - Biz Releases

Photo: Contributed

A wave of change is about to crash on the shores of family businesses.

Exacerbating the labour shortage as millions of baby boomers retire, Family Enterprise Canada says nearly 60% of family-run businesses are facing transition within the next decade.

Of those, only 47% of owners expect their business to stay within the family.

Darren Schindel in Vernon knows the feeling all too well.

Schindel owns and operates Okanagan Diesel Injection.

It’s a business he took over from his father Norm in 2003. But the next generation isn’t so keen on keeping up the family tradition.

His two grown children have “shown no interest.”

His daughter wants to be a welder, and his son “wants to get into business, but not into the business,” Schindel said. “That might change, I don’t know. But I doubt it.”

Schindel is in his 50s and laughs when he says “I’ve got some good years left in me … I’m thinking at least 10 more. That will get me close to retirement age.”

At that point, if the ‘kids’ don’t feel like taking over, Schindel said he’ll sell.

“It’s going to be my retirement plan in the end,” he said “… unless I win the lottery.”

On top of the what-ifs, Schindel said it is becoming much harder to find and keep good talent.

“I think there’s a lot of kids in this next generation who don’t want to do labour or get their hands dirty. They want to sit behind a desk and push paper,” he said.

It’s a scenario being played out across the trades, with just about any industry you can think of desperate for workers.

“Wages are up substantially because of it, just to keep a good worker,” Schindel said. “And, of course, it all gets pushed down to the consumer.”

Schindel said he was short a mechanic for over a year and was lucky to find one. Even so, he’s running the business with a staff of four, including himself, instead of six.

“It’s such a different labour market now,” he said.

Schindel said he’s luckier than most, as he owns the building as well as the business.

“For someone starting out, it would be much harder.”

Family Enterprise Canada is a resource centre for family-run businesses and entrepreneurs. It offers peer support, networking, advocacy, learning opportunities and more, including tools for the next generation of business owners.

“Working with family members is uniquely rewarding, but it can be difficult to maintain healthy family relationships when making tough decisions for either the family or the business,” the organization says.

“Does the next generation even want to take over? Are they ready? How would transition away from the family affect your family dynamics? How would it affect your legacy? These are just some of the questions members seek to answer.”


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