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A Research On Succession Planning

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It could be argued that with over three million family firms in the UK, creating over 9.2 million jobs and contributing to a quarter of the UK’s total GDP , that family businesses are the fundamental backbone to the UK’s economy. This poses the question of why individuals chose to create and carry such businesses on to the next generation, when faced all types of obstacles that non-family businesses wouldn’t necessarily deal with. Succession planning is a topic that every family firm must consider, and I wish to see what strives the next generation to contemplate nurturing and growing their family capital, or to choose a different path altogether.
Although there has been lots of research focussing on succession planning, very little has looked at the other motivational factors that may influence an individuals decision to join the family business or not. Family businesses are renowned for not only striving to be successful in terms of profit, market share and competitive advantage, but they also put grave importance on continuity, legacy and the transitioning of not just ownership, but the management of one generation to the next. However, this transition can often be a difficult and complex process with many incurring factors that need to be taken into consideration. Harris et al. (1994) suggested that family business could be more inclined to focus on the long-term survival of the business and retention in the hands of the family when compared to their non-family
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