Family Business Succession

Family owned businesses represent the largest fraction of the world’s economy. For instance, they provide employment to a significantly large group of people across the world. They represent approximately between 65 to 95 percent of the total organizations in different countries (Handler 290). The fact that the family business has long term strategies and their objective of passing the business from one generation to another makes the issue of business transfer more crucial in family business than non-family businesses. Family business succession has become one of the critical issues in the modern family organizations. This is more so in terms of leadership and the management of the firms. In most cases, conflicts arise among the stakeholders on who is supposed to take the leadership in case the leadership positions remain vacant due to various causes. It can also lead to intergenerational conflicts which can also be very critical the existence of an organization. This may affect the overall performance and to some extent the existence of an organization. There are various factors that determine the succession of business from one family member to another. It is important to note that there is a significant difference between intra-family succession and transitions between family and non-family members (Handler 298).
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