Abstract: The research paper is composed of 300 companies which represent 300 family business leaders from all Lebanese regions of small medium-sized family business and from various economic activities. Data had been collected by using a LPI questionnaire defined by Kouzes and Posner. The main aim of my article is to detect the relationship binding the individual leadership practices, i.e. Model the way, Inspire a shared vision, Challenge the process, Enable others to act and Encourage the heart and family business performance. In addition, to investigate the factors that bolsters family business continuity. This article studies the impact of individual leadership practices on the family businesses performance in a service sector economy. The outcomes of this research show some positive significant correlations exist between the leadership practices and the family business performance for the first-and second generation leaders. In addition, only 3 effective correlations exist between the independent variables and the dependent variables for both generations. For first generation leaders Model the way, Enable others to act and Encourage the heart have a significant impact on family business performance. While for second generation leaders Model the way, Challenge the process and Encourage the heart have a significant influence on business performance. Whereas there are some differences and lack resulted from different adaption of the leadership practices. Thus, the results of this study help the Lebanese family business leaders to improve their leadership practices to achieve higher level of family business performance among first and second generations.