A COMPREHENSIVE STUDY ON FACTORS AFFECT FAMILY-OWNED BUSINESSES SUCCESSION PLANNING
Keywords:
business, continuity, family-owned, planning, successionAbstract
Many businesses leave succession planning up to chance, despite the fact that the literature generally indicates that succession in family businesses takes the form of transfer from one generation to another. Due to the fact that succession planning is not being done and the emotions that are being generated by the process, owners are not adequately prepared for succession. In order to ensure the continuity and prosperity of businesses in the Chenni Municipality, Tamil Nadu, the purpose of this study was to investigate the factors that influence succession planning in family-owned businesses and to determine the significance of these factors. A random sample of 205 out of 440 family businesses was drawn in a systematic manner, and an interview schedule was utilised in order to collect data. The data collected was then analysed using descriptive and inferential statistics. According to the findings, the succession process and the success of the transfer are both impacted by the higher level of education of the founders as well as the communication of the succession decision to all key stakeholders. This communication includes the transfer date as well as the post-succession roles. There is a greater possibility of succession planning in the company when the founder has a relatively high level of education; however, there appears to be a limited level of trust when it comes to female owners. It is therefore recommended that family-owned businesses in the municipality should be encouraged by supervisory or oversight agencies like the registrar general or National Board for Small Scale Industries to improve their educational level, build trust, and set dates for transfer of responsibilities, specify post-succession roles of incumbents and communicate the succession decision to all key stakeholders in order to improve the succession process and ensure the continuity of the businesses.
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