Succession in Polish family businesses. What does it look like? [Raport]
Polish family businesses, their problems and current challenges were examined by the Mariański Group law firm. She presented the conclusions in the report “Family businesses in Poland. Between tradition and the future”. It shows that most companies are still undergoing intergenerational transformation, i.e. transferring management and control of the company to the next generation. The problem includes: in that seniors are hesitant to hand over the reins, and their children do not necessarily want to take over. One of the solutions is a family foundation, although – as the report shows – it is still a little-known solution. 60 percent respondents do not know it, and only 21 percent declares his good knowledge.
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Who currently manages family businesses
The law firm's report was prepared on the basis of nationwide research of 500 family businesses conducted in August 2025.
– Our research shows that over half of Polish companies (50.6%) are still managed by the first generation of owners. The second generation took control of 34.4 percent. cases, while the third generation manages 10.8 percent. companies. Only 4.2 percent family enterprises in Poland are currently under the management of the fourth or further generation. These data show that Polish family businesses are still at the stage of the first intergenerational transfers, while in many Western European countries enterprises run by the third and fourth generations already dominate – says Prof. Adam Marianski, managing partner of Mariański Group.
The report shows that each generation manages the company differently. First-generation companies are often highly entrepreneurial. The founder plays the main role in the company. The second generation focuses on professionalization, implements procedures and uses external advisors. Only the third and fourth ones build family order and institutional mechanismssuch as family councils or family foundations.
Research shows that younger generations are more willing to experiment with innovations, introduce new management models and are open to international development. Older generations, on the other hand, remain cautious, based on experience and gradual evolution. — The transfer of power between generations requires not only a legal act or business decision, but also deep psychological and organizational preparation, we read in the report.
What are the problems with succession in family businesses? Company owners are afraid of talking about succession, but the lack of it can also be a source of conflict in the family
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A small percentage of family businesses (15%) have formalized succession plans, and as many as 37%. The surveyed entrepreneurs did not indicate any successor. What's more, as many as 71 percent owners are people who founded and manage the company themselves. And this is increasingly a barrier to company development.
At the same time, succession is postponed. Why? The authors of the report answer that this is most often due to emotional reasons, such as fear of losing control, lack of trust in the successor or fear of conflict in the family. Simultaneously 18 percent enterprises experience family conflicts.
These problems are more likely to arise where there are no documents regulating the principles of cooperation – family constitutions, council regulations or even written succession plans. — Family conflict rarely immediately leads to the collapse of a company, but most often blocks decision-making, slows down investments and weakens the involvement of the next generation, the authors of the report point out.
As Dorota Mariańska, partner at Mariański Group, explains in the report, Changing legal and tax regulations are one of the three main barriers to the development of family businesses, next to competition and problems on the labor market.
The topic of burnout also comes up again in conversations with owners: the feeling that you can't rest or give up the reins because the company “won't survive” without them. This leads to a situation in which the entrepreneur becomes a bottleneck in development – he limits the company's dynamics, even if he does not intend to do so.
Read also: Family foundation. This is what everyone was waiting for. There is a draft regulation
What family businesses do for their future
The report also shows that younger generations bring new quality, technological changes, digital solutions and data-based systems to companies. Yet only 20 percent companies use advanced management tools (such as controlling or compliance), and over 60 percent still relies mainly on the owner's intuition. On the other hand, 30 percent companies declare the first implementations of artificial intelligence (AI).
The family foundation, an instrument of intergenerational succession, is also gaining importance. Within two years, over 2,900 family foundations have been established, and another 2,000. applications waiting for registration.
Many family foundations are being created, but most people do not know about them
A family foundation, introduced into the Polish legal system in May 2023, is one of the best tools for asset management and generational transfers. As Anita Pardej, legal advisor and director, reminds us Legal Department at Mariański Group, its main goal is to collect and secure property and provide benefits to beneficiaries. However, it is not a tax vehicle.
— Unfortunately, in the eyes of many of its founders, the foundation is used only for transactional and optimization purposes. If this entity is established only to sell, for example, shares contributed to it tax-free and to withdraw the funds received, such action will not be approved by the tax authorities, and the authors may be threatened with action under the GAAR (against tax avoidance) clause. – warns Anita Pardej.
Although over 2,900 family foundations have already been established, this solution is still little known. Only 21 percent surveyed entrepreneurs declare good knowledge of it. The most frequently indicated barriers are implementation costs (almost 30%) and uncertainty related to the new legal solution (23%).
Establishing a family foundation involves legal and notarial costs, as well as ongoing management costs, which the owners are not willing to accept.
What happens after the company's succession, i.e. handing it over to successors?
The report also shows the perspective of people who successfully completed succession, i.e. handed over the reins of the company to their successors. Polish entrepreneurs who have had a successful succession do not retire after withdrawing from active management. They are still extremely active, withthey find time to fulfill tasks and dreams that are often postponed until later. For example:
— engage their time and capital to support social initiatives, foundations and associations,
— share their knowledge, engaging in support for young entrepreneurs and family businesseswho are going through this process or are planning it,
— get involved in prestigious organizations, such as the Business Center Club, thanks to which they participate in public debate,
— invest and support financially and substantively various projects. This type of activities is especially favored by succession carried out using a family foundation. — Capital and a network of contacts are an invaluable value for young companies, and doyens share their experience with start-ups – argue the authors of the report.
Let us add that the report also describes many other aspects, including: the role of banks and cooperation of family businesses with external partners. At the same time, family businesses feel underserved in several key areas. The report also identifies milestones in succession planning and recommendations for family businesses.
Author: Łukasz Zalewski, journalist of the Law section of Business Insider Polska
