Abstract
The world economy depends heavily on the continuity and success of the family
business. It is unfortunate, even alarming, that such a vital force has such a poor
survival rate. Less than one third of family businesses survive the succession from
first to second generation ownership. Of those that do, about half do not survive
the succession from second to third generation ownership. There are four basic
reasons why family firms fail to transfer the business from generation to
generation successfully: 1-lack of viability of the business; 2-lack of planning, 3-
little desire on the owner's part to transfer the firm; 4-reluctance of offspring to
join the firm. These factors, alone or in combination, make transferring a family
business difficult, if not impossible. The primary cause for failure, however, is the
lack of planning. With the right plans in place, the business, in most cases, will
remain healthy. (Bowman, 2010:3).
References
- Bowman, Nancy, http://www.sba.gov/idc/groups/public/documents/sba homepage/serv sbp exit.pdf, 2011, 3
- Athanassiou Nicholas, William F. Crittenden, Louise M. Kelly, Pedro Marquez, (2002), “Founder Centrality Effects on the Mexican Family Firm’s Top
- Management Group: Firm Culture, Strategic Vision and Golas and Firm Performance”, Journal of World Business, pp.139-150. Kellermanns W. Franz, Kimberly A. Eddleston, Tim Barnett, Allison Pearson, (March 2008), “An Exploratory Study of Family Member Characteristics and Involvement: Effects on Entrepreneurial Behavior in the Family Business”,
- Family Business Review, pp.1-14, 2008, p.3
- Griffeth W. Rodger, Allen David G., Barett Rowena, 16 (2006) “Integration of
- Family-Owned Business Succession with Turnover and Life Cycle Models: Development of a Successor Retention Process Model”, Human Resources Management Review, pp.490-507. Cater John, Schwab Andreas, (2008) “Turnaround Strategies in Established Small
- Family Business”, Family Business Review, pp.31-50. Andres, Christian, 14 (2008), “Large Shareholders and Firm Performance-An
- Emprical Examination of Founding Family Ownership”, Journal of Corporate Finance, pp:431-445.
Abstract
References
- Bowman, Nancy, http://www.sba.gov/idc/groups/public/documents/sba homepage/serv sbp exit.pdf, 2011, 3
- Athanassiou Nicholas, William F. Crittenden, Louise M. Kelly, Pedro Marquez, (2002), “Founder Centrality Effects on the Mexican Family Firm’s Top
- Management Group: Firm Culture, Strategic Vision and Golas and Firm Performance”, Journal of World Business, pp.139-150. Kellermanns W. Franz, Kimberly A. Eddleston, Tim Barnett, Allison Pearson, (March 2008), “An Exploratory Study of Family Member Characteristics and Involvement: Effects on Entrepreneurial Behavior in the Family Business”,
- Family Business Review, pp.1-14, 2008, p.3
- Griffeth W. Rodger, Allen David G., Barett Rowena, 16 (2006) “Integration of
- Family-Owned Business Succession with Turnover and Life Cycle Models: Development of a Successor Retention Process Model”, Human Resources Management Review, pp.490-507. Cater John, Schwab Andreas, (2008) “Turnaround Strategies in Established Small
- Family Business”, Family Business Review, pp.31-50. Andres, Christian, 14 (2008), “Large Shareholders and Firm Performance-An
- Emprical Examination of Founding Family Ownership”, Journal of Corporate Finance, pp:431-445.
Details
| Other ID | JA27FF92AN |
|---|---|
| Journal Section | Articles |
| Authors | |
| Publication Date | June 1, 2011 |
| Published in Issue | Year 2011 Volume: 3 Issue: 1 |