FAMILY BUSINESS OWNERS’ PERCEPTIONS ON SEEKING ESTATE PLANNING ASSISTANCE

Abstract

The high failure rate among family businesses in South Africa is a cause for concern, given the impact and significance that these businesses have on society and the economy as a whole. Improper – or a lack of – succession planning and estate planning among family businesses is considered the most pressing reason why family businesses fail. The purpose of this study was to investigate the factors that influence family business owners’ intention to seek estate planning assistance from a financial planning professional. The four factors that were identified as influencing family business owners’ intention to seek estate planning assistance were awareness, family financial norms, trust, and potential benefits. A questionnaire was developed based on the valid and reliable items. Statistical techniques, including descriptive statistics, Cronbach’s alpha coefficients, and multiple regression analysis were performed on data gathered from 148 family businesses. The results of this study showed that three of the four factors – family financial norms, trust, and awareness – were found to exert a significant influence on family business owners’ intention to seek estate planning assistance.

Keywords

• Family business,Estate planning,Succession planning

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