Succession Planning for Business Owners

2005 ◽  
Vol 2005 (5) ◽  
pp. 48-54
Author(s):  
Sean Sebold
Keyword(s):  
Succession Planning ◽  
Business Owners

scholarly journals Succession Planning in Micro and Small Family Business (Case: Micro and Small Family Business in East Jakarta)

2021 ◽  
Vol 2 (1) ◽  
pp. 15
Author(s):  
Sakti Hendra Pramudya
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Nuclear Family ◽  
Business Case ◽  
Business Owners ◽  
Common Type ◽  
Business Studies ◽  
Small Family ◽  
Management Succession ◽  
Small Family Business

Family business studies are gaining a foothold in Indonesia. This organization is the most common type of firm throughout the world. Nonetheless, the low survival rate of family businesses may relate to the issue of management succession and the issue is still the principal challenge that they need to face. This study will focus on knowing the importance of succession planning for family business owners, especially those belonging to the micro and small business category. The study involved one hundred family business owners in East Jakarta as respondents of the survey. The study itself would be focused on the ground rules made by the incumbents during succession planning. The study has revealed that, generally, the majority of the sample does not have an appropriate plan of succession. The result also exhibits that the majority of respondents favoring nuclear family members as the future successor. Moreover, the homosocial reproduction phenomenon also could be identified from the survey.

scholarly journals Saving Small Business: The Urgent Need for Improved Business Succession Planning and how Immigrant Entrepreneurs can Help

2019 ◽  
Vol 18 ◽  
pp. 57
Author(s):  
Sarah V. Wayland
Keyword(s):  
At Risk ◽  
Small Business ◽  
Case Studies ◽  
Succession Planning ◽  
Business Owners ◽  
Small Enterprise ◽  
Goods And Services ◽  
Succession Plan ◽  
Immigrant Entrepreneurs ◽  
Business Succession

<p>Small business is the backbone of the Canadian economy, yet fewer than half of small and medium-sized enterprises (SMEs) in Canada currently have a succession plan in place. As such, many of these businesses could be at risk of closure, potentially reducing the wealth of the business owners in question and depriving communities of needed goods and services. This paper explores the possibility of business succession matching programs, with a focus on immigrants as potential purchasers of businesses. Immigrants are more likely to own a business than their Canadian-born counterparts, and a succession matching program could enable them to access established businesses, mentoring, and even creative financing to enhance their own chances of success as well as preserving desirable firms. The research is based on a review of existing literature, case studies and several interviews which identify an urgent need and potential solutions. </p><p><strong>Keywords: </strong>succession planning, small enterprise, immigration, immigrant entrepreneurs</p>

Succession Experiences in Philippine Family Businesses

2000 ◽  
Vol 13 (1) ◽  
pp. 15-35 ◽  
Author(s):  
Andrea L. Santiago
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Asian Country ◽  
Family Values ◽  
The Philippines ◽  
Business Owners ◽  
Family Businesses ◽  
Leadership Succession ◽  
The Family ◽  
Succession Process

Western research suggests that family business owners must prepare for leadership succession in a systematic manner to ensure continuity. A review of the succession experiences of eight family businesses in the Southeast Asian country of the Philippines seems to indicate that the key to smooth succession for group-oriented families is not entirely dependent on succession planning. Rather, a family business's smooth succession depends on the succession process being consistent with family values. In fact, valuing the preservation of the family unit helps to avoid the ill effects that normally accompany the absence of succession planning.

scholarly journals BISNIS KELUARGA TANPA “PUTERA MAHKOTA”

2018 ◽  
Vol 11 (1) ◽  
Author(s):  
Andreas Heryjanto
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Business Owners ◽  
Family Conflicts ◽  
Succession Plan ◽  
The Family ◽  
Family Harmony ◽  
Business Succession ◽  
Fatal Consequence ◽  
Family Business Succession

<p>Business viability is a main goal of family business. However, leaders are usually reluctant to let<br />off their power, even tend to be in charge beyond the age of retirement. The most fatal consequence of<br />reluctancy to hand over the leadership to his successor is the occurrence of "Prince Charles Syndrome".<br />Viability of family business requires a mature succession plan, maintaining family harmony, the<br />responsibility and unity of ownership, and maintaining superior resources. Succession plan becomes a<br />crucial issue in this family business. Succession planning should be a priority, by clarifying who the real<br />"Crowned Prince" appointed to continue the family business. In order for business viability to running<br />well, the second generation as a business successor must be well prepared, i.e. the process of the tacit<br />knowledge transfer, the full involvement of the next generation, and the planned regeneration. It is<br />needed of the willingness and magnanimity of current business owners and leaders to gradually let off<br />business de-facto and de-jure to the "Crowned Prince". With well-prepared succession planning, it will<br />avoid potential prolonged family conflicts.<br />Keywords: Business viability, succession plan, family conflict</p>

Entrepreneurial Competencies of 2nd Generation Selected Family Business Owners in the United Arab Emirates

2012 ◽  
Vol 2 (1) ◽  
Author(s):  
Bienvenido Odejar ◽  
Johan Theiry Kenmoe ◽  
Liza Macasukit Gernal
Keyword(s):  
United Arab Emirates ◽  
Family Business ◽  
Succession Planning ◽  
Second Generation ◽  
Business Owners ◽  
Business Leaders ◽  
Business Community ◽  
Future Directions ◽  
2Nd Generation ◽  
Area Of Interest

Family-owned firms are one of the foundations of the world’s business community and are a growing area of interest among young business leaders. It is especially pertinent in today’s global environment where apt business knowledge and entrepreneurial ability are critical factors for initiating a venture and achieving its continual growth. In retrospect, we have looked at how successful family businesses have survived through the ups and downs of unpredictable economies and found that it is with discipline, passion, adequate succession planning and the proper utilization of financial resources among other significant contributors that allowed family business owners to have accomplished such a tremendous feat. However, the same cannot be said of the majority of today’s money spending generation where young men and women alike find joy in lavishly spending their former generation’s hard earned money. This research paper examines the entrepreneurial abilities and interest of the second generation in starting a business and how they can best be able to foster their strengths.   Keywords - Family Business, Entrepreneurial Abilities, Second Generation Competencies, Future Directions

Impact of natural disasters on New Zealand regional family businesses: perspectives of baby boomer family business owners

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Julia Yonghua Wu
Keyword(s):  
New Zealand ◽  
Natural Disasters ◽  
Baby Boomers ◽  
Family Business ◽  
Succession Planning ◽  
Baby Boomer ◽  
Business Owners ◽  
Family Businesses ◽  
Ageing Population ◽  
Content Type

Purpose This paper aims to describe what baby boomer family business owners in New Zealand perceive the implications of earthquakes on their business and succession planning. The current study focuses on how some businesses have survived significant uncontrollable contingencies, for instance, natural disasters. This paper also documents the insight of what baby boomer family business owners value in their succession planning. Design/methodology/approach Qualitative method was undertaken, comprising face-to-face in-depth interviews with 18 participants, who are baby boomers family business owners in New Zealand. Findings Driven by the unique social and political conditions in New Zealand, baby boomer family business owner’s revealed unique mind-sets and motivations that are oriented in their family value and/or the sense of self-fulfillment. As a result, they are able to adapt to uncertainties and reflect on their adaptability. Although approaching their retirement age and survived earthquakes, most interviewees neither have any urgency to establish or execute succession plans nor are they prepared for contingencies. A profitable trade sale has been identified as a preferred exit strategy. Research limitations/implications The current study is aimed to fill in the gap of exploring how some baby boomers’ family businesses in New Zealand survived deadly earthquakes and how they approach their own succession planning. Practical implications It is hoped that this research will contribute to the well-being of family businesses and be of value to practitioners who provide professional advises for family firms and those who aspire to a career in family businesses. This paper also aims to shed light on the implication of aging population and government policies on family businesses. The findings are, therefore, useful for academics, professional consultants, advisors and regulators. Originality/value However, natural disasters, social unrest and many uncontrollable events disrupt business operations and can be viewed as uncontrollable contingencies. Ageing population and generation-based similarities are also common to many countries and communities. Nonetheless, the interdisciplinary research on ageing population is scant in the context of financial planning, management accounting or taxation at the firm level. This paper also calls for more in-depth exploration on the implications of demographical factors on the organisations and their success or demise.

Small Business Succession: The Educational Potential

1994 ◽  
Vol 7 (4) ◽  
pp. 369-375 ◽  
Author(s):  
Leonard Mandelbaum
Keyword(s):  
Small Business ◽  
Succession Planning ◽  
Small Businesses ◽  
Job Creation ◽  
Educational Programs ◽  
Business Owners ◽  
Perceived Barriers ◽  
Small Business Owners ◽  
Business Succession ◽  
Educational Potential

Small and family-owned businesses play an important role in job creation. In this study, perceived barriers to succession planning are examined. Small business owners (most of whom were family businesses) were asked about these barriers to succession planning and the potential interest in educational programs for small businesses. Based on these data, potential tools and seminars were developed.

scholarly journals A Study on Succession Planning, Prospective Successor Selection, Transfer of Idiosyncratic Firm Knowledge in Family Owned Businesses of Hyderabad

2021 ◽  
Vol 9 (1) ◽  
pp. 8-16
Author(s):  
Manchala Seema ◽  
Syed Sayf Ali
Keyword(s):  
Tacit Knowledge ◽  
Family Business ◽  
Succession Planning ◽  
Business Owners ◽  
Family Businesses ◽  
Indian Economy ◽  
The Family ◽  
Firm Knowledge ◽  
Survey Results ◽  
Insight Into

This study seeks to gain a better understanding of how the succession planning is undertaken in family owned businesses, most preferred qualities in the prospective successor and the transfer of tacit idiosyncratic firm knowledge from one generation to the next generation. The fact that family businesses contribution to the Indian economy is highly significant as well as the fact that most of the family businesses do not survive beyond three generations makes the study important. This study was conducted by distributing a quantitative survey containing numerous close ended questions to the family business owners, potential successors and successors. The survey asked respondents to explain how succession planning takes place in their firm, the most preferred qualities in the prospective successor and the mode of transfer of tacit idiosyncratic firm knowledge from one generation to another. The survey results provided insight into many important factors of succession planning such as the prospective successor being chosen with consensus of the all the family members, the process of succession being well communicated in the business and possessing leadership values is the most preferred quality sought in a successor. Learning by observing is the most preferred mode of transfer of tacit knowledge from one generation to another.

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