Delusions of grandeur starting with second generation makes them fail.
One makes it
One caretakers it
Delusions of grandeur the second generation gets from their expensive education, money flowing around makes them fail. As the delusions of grandeur means living off the business and not running it.
If it passes the third generation it will survive as then they have gotten the processes for doing it correctly..
These are normally things such as seperating being in the family and the business, so in business from merit. If no good then get chucked out of the business, but still in the family.
The people know the rules, such as cannot automatically get a job in the family business.
Not have to do what is needed
When a person first comes to a new country as an economic migrant they have to do whatever is needed to make money, whether it is boring, unglamorous, tough, difficult, or whatever.
However the third generation person with money does not have to do this. So they just do what is fun, gives them pleasure and so on.
However these are things that other people will happily do for free, so on average does not bring in so much money. Some of these things can make money, but only the rare exceptional managed it.
The third generation person as they do not need the money, often does not work hard enough and diligently enough to even achieve this for a possibility.
This is because they just focus on what is fun, not the hard difficult unglamorous and difficult graft, also repetitive stuff that does become tedious.
The third generation person tents to have so much money they can play around like a child, they do not have to be an adult. An adult has to take responsibility and resolve problems. The third generation person just throws money at their problems to resolve them and not effort or work.