FAMILY BUSINESS OWNERS’ PERCEPTIONS ON SEEKING ESTATE PLANNING ASSISTANCE

Year 2019, , 55 - 71, 31.07.2019

Tony Matchaba Hove Teneille Troskie

https://doi.org/10.34109/ijefs.201911204

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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