A Review of Factors Affecting Family Business Succession (FBS) and Generational Transfer
NkasI, E. Ernest
Department of Accountancy
School of General Studies and Management Technology
Federal Polytechnic, Bali, P.M.B 05 Bali, Taraba
ABSTRACT:
This paper focuses on a review of factors affecting family business succession and generational transfer. Family business is one of the special group issues that contributes substantially to the economic growth and development of any economic nation. Thus, the objective of this study is to identify factors/challenges affecting family businesses and generational transfer. Succession in family businesses has been a key challenge especially the issue of intergenerational transfer. Some theories that explains why family business choose certain sources of financing would be highlighted as well. This paper adopts a thorough literature search linking family businesses and transitional succession from past research. The major findings of this study reveals that, only 30% family businesses survived into the second generation whilst 15% survived into the third generation. The paper recommends that, family business succession plans should be put in place One of the limitations or implications of this paper is that, lack of good coordination and working relationship among the family kinsmen has negative effect on family business transitions and this leads to poor business performance and conflict amongst family successor. However, the outcome of this paper would assist family businesses to put in place plans for successful and smooth generational transfer of the family business.Keywords: family business, succession, generational transfer & transition processes
