Small Scale Family Business Succession and Sustainability: A Study in Chattisgarh


Affiliations

  • Shri Shankaracharya Group of Institutions, Bhilai, Chattisgarh, India

Abstract

Succession is an integral process of every family firm. Since majority of the small family firms fail to survive for long term and fall sick when it reaches the second -third generation or in the first generation itself, managing succession is identified as the most important but critical issue in a family business. This study tries to evaluate the issues behind such a problem and to suggest strategies to remove the lacunae. After exploratory study, succession planning, succession timing, selecting a successor and social issues were identified as independent variables, regression analysis was performed to find out its impact on the performance of paddy processing units of Chattisgarh. The result reveals that there is a strong impact of succession planning and social issues on firm performance. A firm which plans for its succession in advance and associate with social causes achieve success, reputation and hence sustainability.

Keywords

SMEs, Succession, Succession Timing, Family Business.

Subject Discipline

Business Management

Full Text:

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