This paper aims to analyze the impact of traditions on the performance of family businesses in North Macedonia. Continuous growth of the influence of traditions in family businesses in different forms, with special emphasis on the division of family inheritance, which has also affected the performance of family businesses, even in some cases leading them these businesses even in their division. The impact of heritage division on family businesses is a complex and multifaceted issue. It can have a significant impact on the success and stability of the business, and it is important for family businesses to be aware of the potential risks and to take steps to mitigate them. In heritage division can lead to conflict and uncertainty, and it is important for family businesses to have a clear succession plan in place in order to minimize the impact of heritage division. Preventing women from joining and contributing to family businesses is another traditional factor that affects many businesses in our country. To carry out our analysis, we surveyed 100 family businesses through a questionnaire. Data processing was carried out through the structural equation model (SEM). The results show that 57% of family businesses with the division of wealth or inheritance among the heirs have led the family businesses to their division. However, family businesses divided as a result of inheritance division have shown a 13% lower financial performance and a 36% higher non-financial performance. The lowest financial performance has come again as a result of the division of capital, which has reduced the profit, while the highest non-financial performance has been increasing the motivation in work and innovations. Following this analysis, I will examine potential solutions and recommendations to ensure a smooth succession process that benefits both the family members involved and the longevity of the business itself.