Successful Strategies for Transferring a Family Business from One Generation to the Next
DOI:
https://doi.org/10.47611/jsrhs.v11i4.3737Keywords:
Family business, Succession strategy, family business fail, women in family businessAbstract
Family businesses make a significant contribution to China's GDP, providing jobs and opportunities for many to showcase themselves. However, family businesses must face several challenges, one of the most important of which is succession. My research is a qualitative study of the strategies used by different business families to pass the family business from one generation to the next. The findings support previous research that most family businesses deplete the company's resources during the succession process, resulting in failure of the succession and bankruptcy of the company. Succession fails for many reasons, such as lack of preparation. My data shows that the enthusiasm of the successor is more important than the education. Effective communication, establishing long-term goals and clear governance rules, and being well prepared also play an important role in avoiding succession failure. The findings of this work have practical and theoretical implications.
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