Family businesses are notoriously difficult to manage. You have all the usual stresses of business plus the family dynamics that can make it hard to be as direct or open as you might be in another situation. As some point, the older generation often starts to feel threatened by change the younger generation wants to make. At some point, the younger generation begins to feel that they should be treated as equal adults, not as kids. Many, many families do figure out how to run the business without destroying the family but it does take some work.
I can’t make a recommendation to you about exactly what to do since I don’t know enough about the problems. But I can sympathize and make one suggestion. If you haven’t done so already, call in a consultant to family businesses to help you clear the air and define roles in a way that works for everyone. A place to start is the website for the UMass Amherst Family Business Center: www.umass.edu/fambiz. See whether there is a similar service in your area.
As difficult as they can be, family businesses are also wonderful opportunities for families to build something meaningful and interesting together. It can be very gratifying. I hope you will call in some expert help so the business can be successful in a way that everyone can feel good about.
I wish you well.