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This chapter is excerpted from ‘The Family in Business: The Dynamics of the Family Firm'. The family business has historically been seen as a haven for both family and business problems, the net result being that few families persist into the second generation and fewer still into the third and subsequent generations. Recent research has taken issue with this all- encompassing pronouncement and has suggested that those family businesses that persist into future generations have positive qualities that have been overlooked. However, a common definition of what constitutes a family business is lacking, thereby casting doubt on much of the applicability of the research findings. In particular, the nonmonetary value the founder places on the business affects whether it ranks as a family business. In narrowing the focus to one subgroup of possible family business candidates - namely, where two generations own the majority of equity, both are represented in the workforce, and the founder clearly states his intention of creating a family business - the dynamics of the family-business connection and the attending challenges are explored. A new interpretation is presented as to why second-generation members enter the family business despite the many problems that can develop. Their intent is to resolve preexisting conflict and problems with and within their families that can take place only in the family business. A variety of case studies and vignettes illustrate this thesis. In addition, a model of transition and succession planning is offered as a means of helping family businesses traverse the many obstacles in their path toward longevity.