Family-Owned, but Not Family-Run: U.S. Family Enterprises Expect Sizable Shift Away from Internal Leadership over Next Decade, KPMG Finds
93% of family businesses are confident in their growth strategy but face a critical "Architecture Gap" around AI governance and external talent
New York, New York--(Newsfile Corp. - August 27, 2026) - 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, the U.S. audit, tax, and advisory firm.
The survey reveals a stark evolution in how private wealth views leadership. While an overwhelming 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," said 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."
The "Architecture Gap"; Ambition is Outpacing Infrastructure
As family enterprises become more comfortable separating ownership from management, they are also confronting the governance, talent and technology requirements needed to support their next phase of growth. The findings reveal a clear "Architecture Gap" between growth ambitions and the organizational capabilities required to deliver on them. 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.
Technology provides perhaps a clearer illustration of this "Architecture 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. The disconnect extends beyond technology: a lack of formal governance can make it harder to attract the outside executives and specialized AI talent that many family businesses will increasingly depend on for growth. As leadership transitions from family-run to family-governed models, governance itself is becoming a competitive advantage, helping family enterprises attract the talent needed to scale while preserving the values that define family ownership.
