Family Businesses Face Generational Trust Gap Despite High Overall Public Goodwill, New Study Finds
Younger generations show different perceptions of family-owned companies
ORANGE COUNTY, Calif.
Family businesses hold a significant trust advantage with American consumers, but new research suggests that maintaining that advantage with younger generations may require family-owned companies to do more to demonstrate how they are evolving.
A nationwide study uncovered a notable generational divide how family businesses are perceived.
According to the 2026 Public Perception of Family Businesses Report from Next Gen Collaborative, 70% of Americans identify family businesses as the most trustworthy and transparent when compared with private businesses and public companies. Seventy-seven percent say family businesses have the most genuine and authentic identity, while 95% believe family businesses are important to their communities.
But the nationwide study of 1,026 U.S. adults also uncovered a notable generational divide. Among adults age 60 and older, 70% associate family businesses with dedication, compared with just 50% of adults ages 18–39. Similarly, 83% of adults 60 and older associate family businesses with authenticity, compared with 72% of younger adults.
“Family businesses have earned an extraordinary level of goodwill, but they can’t assume that younger generations will automatically see them the same way their parents and grandparents did,” said Jenny Dinnen, co-owner of Next Gen Collaborative. “The research suggests family businesses have an opportunity to be much more intentional about showing younger consumers and employees what being a family business means today.”
Research Reveals a Visibility Gap
The study also found differences between people who have worked for family businesses and those who have not.
Current and former family-business employees were more likely to characterize these organizations as ambitious, creative, and innovative. At the same time, they were more likely to recognize internal challenges involving succession, outdated technology and leadership.
According to Next Gen Collaborative, those findings point to a potential “visibility gap” between how family businesses operate internally and how they are perceived externally.
“People on the inside often see a much more complex organization than the public sees,” said Katie Rucker, co-owner of Next Gen Collaborative. “The outside world may associate a family business primarily with tradition, community, and authenticity, while employees also see the innovation, ambition, and change taking place behind the scenes. Family businesses need to get better at telling both sides of that story.”
That communication could become increasingly important as younger Americans take on greater roles not only as consumers, but also as employees, managers, and future leaders of family enterprises.
Modernizing Without Losing Identity
For family businesses, the challenge is not simply modernization. It is evolving while preserving the characteristics that have helped create unusually high levels of public trust.
Dinnen and Rucker say family-business leaders should be asking whether the qualities customers and employees value most are being preserved as the company grows; whether innovation is visible to the outside world; and whether younger audiences understand what the organization stands for today rather than relying on perceptions formed by previous generations.
“Modernization and authenticity don’t have to be competing priorities,” Rucker said. “A family business can adopt new technology, pursue growth, and prepare for the future while remaining people-first, values-driven, and connected to its community.”
The findings also have implications for succession planning. As leadership transitions to younger generations, family businesses face the dual task of preparing the organization for change while maintaining the identity and values that customers and employees associate with the family name.
“As second-generation family-business owners ourselves, we understand how personal these questions can be,” Dinnen said. “The goal shouldn’t be to protect a trusted reputation by standing still. It should be to build on that trust by preparing for leadership transitions, making innovation more visible, and continually asking whether the business is ready for what comes next.”
For family businesses, the research suggests trust is not simply a reputational benefit. It is a competitive asset—one that will need to continue to be earned as customers, employees and leadership change.
About the 2026 Public Perception of Family Businesses Report
The 2026 Public Perception of Family Businesses Report examines how Americans perceive family-owned businesses, including attitudes toward trust, authenticity, community impact, innovation, leadership and other characteristics. The research was conducted in partnership with MacKenzie Corp. and surveyed 1,026 U.S. adults.
ABOUT NEXT GEN COLLABORATIVE
Next Gen Collaborative is a strategic foresight and advisory firm founded by Certified Futurists and twin sisters Jenny Dinnen and Katie Rucker. Combining decades of research and insights experience, real-world business leadership, and strategic foresight, Next Gen helps people, leaders, and organizations think more broadly about change, challenge assumptions, explore what’s possible, and intentionally shape what comes next. Next Gen works with organizations through strategic foresight, research and insights, facilitated planning, workshops, leadership retreats and keynote presentations. Visit NextGenCollaborative.com.
Media Contact Information
NEXT GEN COLLABORATIVE
art@bulldogcommunications.com
Location
ORANGE COUNTY, Calif.
Publish Date
2026-09-18
