The Transmission of Entrepreneurial Succession in Family Businesses Research Essay
Research shows that many wealthy families lose their wealth in the second generation, and one percent of it in the third generation. Only one in three companies reaches the limit. The concept of entrepreneurial legacy provides fertile ground for understanding the ways in which business families can transmit entrepreneurial perspectives, skills, and capabilities. Abstract. A significant number of companies in South Africa originated as family businesses and are contributors. contribute significantly to job creation, eradicating poverty and increasing prosperity. Family business succession is widely regarded as one of the most critical events in any family business. But despite extensive research, surprisingly, current evidence on the extent to which family business owners achieve, adapt, or even abandon their initial succession plans is still lacking. This study was conducted with a sample of family business successors at the UC Family Business Community. The research shows that autonomy or freedom in making choices plays a major role. In family businesses, transgenerational entrepreneurship is an essential component for successful succession, which tends to diminish over generations. Entrepreneurial heritage thus helps explain transgenerational entrepreneurship and has implications for research on family businesses, imprinting, and succession. View Show summaryThe study provides an overview of six major research streams on the influence of family and migration background within the context of family entrepreneurship: 1 the influence of family on the. The transfer of control among owners in a family business is critical to succession planning because it directly determines the decision-making power of successors after the transition. Transfer of ownership. The result of this study is that succession planning influences family business succession, 2 family relationships influence family business succession, and 3 entrepreneurial spirit. Family entrepreneurship is a research area of growing interest that focuses on the entrepreneurial attitudes and behaviors that emerge at the interface of individual family members. This article presents an in-depth analysis of the succession process in family businesses, with a particular focus on the significant shift from family business owners to externally hired managers..