The phenomenon of succession in a family business

Abstract

The article refers to an important issue concerning family businesses, which is succession. Often in family companies there is a problem related to continuation of business activities by next generations. What can be the reason for it? Certainly one of the most important is the lack of long-term, strategic approach to the succession issue. Company founders are so absorbed in managing the company that they do not notice the passing of time, do not want to notice that their descendants have the potential to continue the family saga. However, subconsciously they do not want this, they belittle the competence of potential successors, and when it comes to the moment of succession, the problem arises: Who? When? How? These are questions which every business owner must answer. If he does it earlier, he has a chance to achieve success. Acting too late brings him closer to failure, which means liquidation of the company or the least punishment for inaction will be a decrease in the company's efficiency and, consequently, its financial profitability. Planned succession is a process, which is carried out over several years in the company, is a positively creative factor, which strengthens the organizational efficiency of the company, but above all influences the right organics in the company, which cause the right proportions and naturalness in this difficult period of "taking over the company" by the next generation.