Originally published by Capitol Hill Times
In neighborhoods across Illinois, particularly in Chicago, immigrant-owned businesses such as family-run grocery stores, logistics firms, auto repair shops, corner pharmacies, and medical clinics serve as vital community institutions. These enterprises are not only economic engines but also cultural anchors. However, many are now confronting a significant, yet under-discussed, challenge: succession planning.
According to the Illinois Immigrant Impact Task Force, immigrants constitute 14% of the state's population but represent 23% of all self-employed business owners. This disproportionate contribution underscores the essential role immigrant entrepreneurs play in the state's economy. As first-generation founders age, the pressing question becomes: what happens when it's time for them to step down?
Ankit Shrivastava, Founder & Managing Partner of Enventure—a U.S.–India private equity firm specializing in family-owned businesses undergoing generational transitions—emphasizes the importance of preserving these legacies. "Immigrant-led family businesses are the backbone of many communities, yet often overlooked by traditional private equity," he notes. "We see these businesses not just as financial opportunities, but as legacies worth preserving."
Succession planning for immigrant founders is often complicated by personal factors. These businesses symbolize decades of sacrifice and risk. Their children may pursue different careers or relocate, and few families have formal plans to ensure a smooth transition.
In Illinois, this issue is particularly urgent. Loyola University Chicago’s Family Business Center reports that nearly 80% of businesses in the state are family-owned, many led by immigrants or first-generation Americans. Yet, industry research indicates that over half of family businesses nationwide lack a succession plan.
Shrivastava highlights that succession involves more than appointing a new leader; it's about transferring institutional knowledge, preserving community ties, and preparing the next generation to lead with purpose and profitability.
Recognizing these challenges, Governor JB Pritzker’s administration, through a May 2023 report by the Illinois Immigrant Impact Task Force, identified business development as a critical issue for immigrant communities. The report advocates for expanding programs that support immigrant entrepreneurs, who often face both business growth hurdles and systemic barriers.
In response, firms like Enventure are adopting innovative models. Instead of traditional acquisitions, Enventure engages in co-ownership and long-term partnerships. Their ValueEdge™ framework emphasizes gradual transitions, integrating operational expertise while honoring the cultural identity and legacy of immigrant-led businesses.
"Our model is built around alignment with founders and families," Shrivastava explains. "With a patient 5–6 year investment horizon, we focus on sustainable growth and generational continuity, delivering value without compromising purpose, people, or identity."
This approach is particularly relevant in Chicago, where immigrant entrepreneurship and family business traditions are deeply intertwined. From South Asian restaurants on Devon Avenue to Latino-owned service shops in Pilsen, these businesses often serve as cultural anchors, supporting local economies and providing stable employment in neighborhoods that might otherwise be overlooked by larger investors.
Nevertheless, successful succession requires proactive planning, access to trusted advisors, and the integration of technology. Shrivastava sees a growing role for tools like AI to optimize operations, forecast growth, and streamline decision-making—tools that younger successors may embrace more readily if given the opportunity.
Illinois stands at a pivotal moment. With over 1.8 million immigrants residing in the state and increasing recognition from policymakers of their economic impact, now is the time to act.
"If we want these businesses to thrive into the next generation, we need to support them with the right tools, capital, and cultural understanding," Shrivastava asserts.
This entails viewing immigrant-owned businesses not as small or niche, but as vital pillars of the state's economic and cultural fabric. It also means acknowledging the quiet crisis of succession and transforming it into an opportunity for sustainable, inclusive growth.