A now renowned report by the Williams Group wealth consultancy highlighted a frightening statistic – 70 percent of high-net-worth families lose all their wealth in the second generation.
It also says 90 percent lose it all by the third generation meaning great-grandchild of the initial wealth creator get nothing in nine out of 10 cases.
Many reasons explaining this wealth loss have been highlighted, key among them there being no perceived serious need to invest in and equip the next generation, and two, many wealthy families lacking dispute resolution mechanisms.
Thirdly, there is the lack of development of entrepreneurial talent among the next generation. Today’s article is a mesh between reason three and reflections on the Standard Bank’s report; Africa Wealth Report 2020…