scholarly journals Relevo generacional y transmisión “mortis causa” de la empresa familiar en el Derecho español

2020 ◽  
Vol 22 (2) ◽  
pp. 34-75
Author(s):  
Ignacio Gallego Domínguez
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Businesses ◽  
The State ◽  
Code System ◽  
Next Generation ◽  
Legal Requirements ◽  
Inheritance Tax ◽  
Spanish Law ◽  
The Family

The most crucial challenge for family businesses is the transfer to the next generation. It affects both the leadership and the ownership of the enterprise, whether individual or corporate. Transferring the ownership of the organization at the time of the death of the owner, raises important questions in the Spanish Civil Code system, in which inheritance contracts are not allowed, and there are rigid forced heirship provisions, which limit the testator's freedom. The correct and appropriate transmission of the family business requires adequate planning, which must lead to write a will -to avoid intestacy-, and make use of those special mechanisms that contemplate the payment of the forced heirship with money outside the state, as well as those others allowed in Spanish law that help to channel the phenomenon. Succession planning also requires being vigilant to comply with the legal requirements for obtaining benefits in inheritance tax.

Next-generation leadership development: a management succession perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joseph Kie Kuong Tang ◽  
Wan Sabri Hussin
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Businesses ◽  
Chinese Family ◽  
Next Generation ◽  
Content Type ◽  
The Family ◽  
Management Succession ◽  
Inclusive Approach ◽  
Malaysian Chinese

PurposeThis research study focusses on the succession challenges in small-medium outboard marine businesses of Malaysian Chinese family ownership. The founder-owners face challenges in convincing the next-generation members to establish their careers within the family business and to ensure successions are in place to safeguard the family's wealth. A gap exists in the research literatures concerning such family business owners; and their experiences would provide valuable information to other Malaysian Chinese family businesses planning to start the succession journey.Design/methodology/approachAn exploratory case study methodology to research five Malaysian Chinese family businesses cases in Klang Valley, Selangor, Malaysia, is used in this study. The primary qualitative data were obtained through in-depth, semi-structured interviews and observations. The research data lead to the identification of the following themes: generational change affects the survival of small-medium Malaysian Chinese family-owned businesses; the founder-owners' intention and desire for business to pass to the next generation give rise to the imperative of succession; the founder-owners' motive and goals, family context and the business nature would determine a large part to how the succession plans are carried out and the upbringing, expectation and obligations would determine how the next generations of children would view the prospect of taking over the family business. From this, a succession model that detailed an inclusive approach to succession planning process between the two generations is established.Research limitations/implicationsA small purposive sample is included, and it is recommended that a larger and more diverse sample be collected in future studies. This study follows a nuclear family structure of parents and children. If more Chinese family businesses are selected based on a wider set of family members such as uncles and cousins, the findings may differ.Social implicationsThis research study could also facilitate other Malaysian family businesses to rethink and refocus on the importance of undertaking an inclusive approach to succession planning and also help potential next-generation successors in understanding and working towards attaining the qualities that family firms look for in future leaders.Originality/valueThe researcher summarizes the study findings into a management succession model. An inclusive succession approach is needed to overcome these challenges and would enable sustainability, continuity and longevity of the family business. This would help the family business to understand that succession is not a single event but a process that needs to be planned together with the next-generation family members over a certain period of time.

CHALLENGES THE MEXICAN FAMILY OF ENTREPRENEURS FACES

2017 ◽  
Vol 12 (1) ◽  
Author(s):  
Yolanda Saldaña ◽  
Fernando Ruiz ◽  
Laura Gaona ◽  
Juan Jesús Nahuat ◽  
Kelly Muñoz Peña
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
The State ◽  
Important Place ◽  
The Family ◽  
Mexican Family

Given that the Mexican family provides more support and assurance than the State, the family still takes an important place in the Mexican`s life. Therefore, this work describes and analyzes how this phenomenon can impact the profitability and continuity of the family businesses in our country. To achieve this objective it was done a documentary interdisciplinary consultation including classic authors of the Mexican`s psychology and present contributions from the field of the family business. The results obtained showed that the expectations that a family who owns a business has respect to the family and the family business itself have an effect on the assets and the family business`s legacy. It is concluded that it is not about to nullify the influence of the family in the family business, but rather to manage it adequately.                                                                                                

scholarly journals Diversification of export territories of family businesses as a tool of their further development

2019 ◽  
Vol 17 (3) ◽  
pp. 306-322 ◽  
Author(s):  
Naděžda Petrů ◽  
Andrea Tomášková ◽  
Monika Krošláková
Keyword(s):  
Foreign Trade ◽  
Family Business ◽  
First Generation ◽  
Family Businesses ◽  
Next Generation ◽  
Foreign Markets ◽  
The Family ◽  
The Stability ◽  
Further Development ◽  
The Eu

Family business is the largest global source of jobs in the private sector, whose multigenerational nature strengthens the stability of individual economies. A competitive small and medium-sized enterprise (SME) sector into which family businesses are classified is an essential prerequisite for the full-fledged integration of any economy into the global economic space. For the Czech economy, the importance of foreign trade is increasing, and is dependent on the capabilities of companies to expand to foreign markets. The goal of this article is to identify involvement of the generation of successors to export activities of family business, focusing on diversifying export territories in relation to structure of the industry A secondary goal is to discuss the demand mechanisms for SMEs/family business oriented toward export. The scientific hypotheses defined are focused on demonstrating a dependency between the diversification of export territories, the involvement of the generation of successors in the management of the company and structure of industry. Authors have demonstrated that family businesses managed by the first generation of founders export primarily to the territories of Slovakia, Germany, and the EU. Companies where the next generation contributes to management diversify territorial risk and also export outside the EU countries. A significant correlation was demonstrated between automotive industry and Germany, Slovakia and country outside the EU and mechanical engineering and country outside the EU. The uniqueness of this article lies in the topicality of the real transition of Czech family businesses to the next generation, which carries out foreign trade to promote the further development and sustainability of the family business for future generations.

scholarly journals Family business: comparison with non-family, key differences and features of operation

2021 ◽  
Vol 71 (4) ◽  
pp. 140-150
Author(s):  
Yu. Solonenko
Keyword(s):  
Family Business ◽  
Ownership Structure ◽  
Social Systems ◽  
The United States ◽  
Local Communities ◽  
Family Businesses ◽  
The State ◽  
Family Enterprises ◽  
Moderate Growth ◽  
The Family

One of the traditional methods of the investigation of family business, as the most common and sustainable form of management in the world, is its comparison with the activities of non-family businesses. This approach makes it possible` to introduce into the analysis a fairly large list of indicators, which in turn increases the understanding of the functioning of both family and non-family companies. In this paper the investigation of family enterprises is carried out on the basis of developments of leading foreign scientists and the table is formed. Thus, the invesstigation demonstrates significant differences between family and non-family business, which are reflected in the general indicators, structural organization, forms of ownership, management, theoretical justification of doing business, business goals, available resources of the firm. Differences in both interior and exterior of the operation of these business facilities are defined. In general, the family business is socially oriented, aimed at stable moderate growth, resilient in times of crisis, adaptive, risk-averse, aimed at the long-term perspective of existence in order to pass it on to the next family generation. Analyzing the social systems of economically successful countries, such as the United States, Japan, the European Union, the Persian Gulf and East Asia, we find that the main form of ownership belongs to the family business. More detailed analysis of the economic systems of these countries reveals the formation of the balance between the ownership structure and the power structure. The ownership structure is characterized by large percentage of independent private owners, where the family form of ownership is widely represented in the leading sectors of the economy, and the family business itself is the dominant form of entrepreneurship. It is the family business that configures the property system within a single country, forming powerful social stratum of independent owners who control the main resources of the state. The presence of this layer results in the evolution of power democracy, where state institutions do not have declarative powers, but operate in real formal democracy. The level of real democracy (democracy) in the country is determined not by freedom-loving articles of the Constitution, but by the number of independent owners in the state. Family businesses and independent family owners are closely linked to local communities, are an integral part of them, providing jobs and employment in the regions, which is the basis for economic prosperity of local communities and the country as a whole.

scholarly journals Portuguese and Brazilian Family Business: in Between Urgency and Delay Perceptions in the Succession Process

2020 ◽  
Vol 3 (2) ◽  
pp. 24
Author(s):  
Ana Paula Marques ◽  
Leandro Alves da Silva
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Businesses ◽  
Executive Succession ◽  
Family Conflicts ◽  
The Family ◽  
Management Succession ◽  
Business Succession ◽  
Depth Interviews

Family business has been the focus of several studies over the last two decades and its relevance has been supported by the interdisciplinary perspectives in the fields of management, entrepreneurship, economics, psychology, and sociology. Despite that, there is still insufficient knowledge about the key role of family influences in the business, namely the intergenerational management succession, its planning and effectiveness. According to a recent research focused on the entrepreneurial succession in Portugal (AEP, 2011), 50 percent of family businesses are not passed on to the second generation and only 20 percent reach the third generation. In fact, business succession planning has been identified as one of the most challenging steps in the life of the family firm, both in maintaining the competiveness of the business, and in overcoming intra/ inter family conflicts. Nonetheless, resistance to succession, relationship founder/ successor, planning of succession, and type of organisational culture, among others, explain how executive succession is one of the most important and hardest tasks in organisational life (Zahra, 2005). This paper will be supported mainly by qualitative data, taking into account the main results from the project “Roadmap for Portuguese Family Businesses” (NORTE2020/FEDER) developed in Portugal (Marques, 2018) and in Brazil (Silva, 2018), which analyses in-depth interviews conducted to Portuguese (N 23) and Brazilian (N 11) founders/managers/owners. In the present article we wish to discuss the main management challenges of a family business, particularly the importance of succession preparation and the role of the family in the socialisation of the second (third or subsequent) generation.

Succession planning and family business performance in SMEs

2017 ◽  
Vol 36 (3) ◽  
pp. 330-347 ◽  
Author(s):  
Mozhdeh Mokhber ◽  
Tan Gi Gi ◽  
Siti Zaleha Abdul Rasid ◽  
Amin Vakilbashi ◽  
Noraiza Mohd Zamil ◽  
...  
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Business Performance ◽  
Positive Impact ◽  
Family Businesses ◽  
Related Factors ◽  
Content Type ◽  
The Family ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of preparation level of heirs and the relationship between family and business members on the performance of family business in small- and medium-sized enterprises (SMEs) in Malaysia. Design/methodology/approach A quantitative research design involving the use of a survey questionnaire was implemented to investigate the influences of succession planning factors on the performance of family business in SMEs. The survey was conducted on 50 family business successors in Malaysian SMEs. Findings The result showed that the two studied factors – preparation level of heirs and the relationship between family and business members – have a positive impact on the performance of family business. Research limitations/implications The research concentrated on the performance of family business in SMEs in Malaysia’s southern region. The generalization therefore must be made very cautiously to the overall Malaysian SMEs. Practical implications The findings help family businesses to better understand the importance of the preparation level of heirs and the relationship between family and business members on business performance. This study shows the importance of key factors influencing succession planning so that the successor to the family business can bring the family firm to the next stage of success. Originality/value This study serves as a reference or guide for the management of family businesses to better understand the important factors for effective succession planning. It considers the best possible preparation and family-related factors affecting the end results of business, particularly in Malaysian SMEs.

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 Family Business Formalization in South Eastern Nigeria: The Role of Intra-Industry Network

2018 ◽  
Vol 1 (2) ◽  
pp. 43-53
Author(s):  
Kenneth Chukwujioke Agbim
Keyword(s):  
Family Business ◽  
Survey Design ◽  
Economic Recession ◽  
Family Businesses ◽  
The State ◽  
Small Scale ◽  
Business Owner ◽  
South Eastern ◽  
The Family ◽  
Industry Network

In most developing countries, majority of the family businesses are started with the support of networks on a small scale in the informal sector because the families and entrepreneurs are poor. Moreover, in areas where they are actively involved in networks, the benefits of such network relationships are rarely harnessed. In South Eastern Nigeria, the state of informality among family businesses has become a source of worry to both the State governments and owner-managers of family businesses. This is coming on the heels of the country’s economic recession and the need for the governments to increase their internally generated revenue. And the quest by the family business owner-managers to evade tax so as to increase their income. This is evident from the increasing number of family businesses that are operating outside government system of regulation in the zone. Based on these scenarios this study seeks to assess the effect of intra-industry network on family business formalization in South Eastern Nigeria. Survey design was adopted for the study. The study data were generated through questionnaire and analyzed using linear regression. The results show that intra-industry network significantly and positively affect family business formalization. The researcher recommends encouraging family business owner-managers to be interconnected with other founder/CEOs or descendant/CEOs and family firm employees within the same industry for the mutual benefit of acquiring and sharing information and knowledge that will facilitate the formalization process of their family businesses.

scholarly journals The Transition of Family Business Leadership:

2018 ◽  
Vol 2 (3) ◽  
pp. 101-104
Author(s):  
Dahliana Kamener ◽  
Norasekin Ab. Rashid ◽  
Daniati Puttri
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
First Generation ◽  
Second Generation ◽  
Family Businesses ◽  
Business Leadership ◽  
The Family ◽  
Family Leadership ◽  
Business Succession ◽  
Family Business Succession

The issue of succession is very important because the successful succession leads to the sustainability of a family businesses (Sharma & Dave, 2013). Generally, the family businesses are difficult to flourish and even many have bankrupt. Some family businesses are bound on the first generation  and some have collapsed in the second generation.  Literature shows that just 30 percent of family businesses can be passed along to the second generation, and 70 percent fail after first generation step down because there are no preparation for succession and inability  of the next generation to control and run the company (Aronoff, (2004).  The study purposed to examine six hypotheses and the result showed the succession planning, non-family leadership, and decision making authority unsignificantly affect on the succession of the family business. Nevertheless, founder's influence, successor and strategic planning variable affect significantly to the success of family business succession at Padang city, West Sumatera.  

scholarly journals Intergenerational Management Succession: Specificities of the Portuguese Family Business

2020 ◽  
Vol 6 (1) ◽  
pp. 43
Author(s):  
Ana Paula Marques ◽  
Ana Isabel Couto
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Online Survey ◽  
Family Firms ◽  
Family Businesses ◽  
Executive Succession ◽  
Business Organisation ◽  
The Family ◽  
Management Succession ◽  
Business Succession

Family firms are considered the world’s most predominant form of business organisation. Notwithstanding the fact that there is a lack of consensus with regards to their definition, on recognise that family firms are different from non-family businesses due to their specific relations at three levels, namely ownership, business and family. It would appear that the family influences, shapes and conditions both the firm and its continuity, mainly through the intergenerational management succession, its planning and effectiveness. According to a recent research focused on the entrepreneurial succession in Portugal (AEP, 2011), 50% of family businesses are not passed on to the second generation, and only 20% reach the third generation. Also, taking into account the main results from the project “Roadmap for Portuguese Family Businesses” (NORTE2020/FEDER), the empirical findings have proved that the business succession planning has been identified as one of the most challenging steps in the life of the family firm, which demands for appropriate analysis. In fact, resistance to succession, relationship founder/ successor, planning of succession, type of organisational culture, among others, explain how executive succession is one of the most important and hardest tasks in organisational life. In this article, we aim to discuss the main management challenges of a family business, particularly the importance of succession preparation and the role of the family in the socialisation of the second (third or subsequent) generation. Based on an online survey (N 1148) and on in-depth interviews conducted to founder/ manager/ owner (N 23), we will seek to point out major challenges faced by the Portuguese family business, as far as this matter is concerned.

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