Succession Planning for a Family Business

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Succession Planning for a Family Business

A Family Business is a business actively owned and/or managed by more than one member of the same family. Family business has been as popular in the Indian economy like elsewhere in the world, it is perceived in a common sense. Thus, the term family business invokes various meanings to various people. While some perceive it as traditional business, others believe it is community business, and still others mean it as home-based business.

The characteristics of family business includes:

  • A group of people belonging to one or more families run one business organization.
  • Position in family business is swayed by the rapport the family members have among themselves.
  • Family controls over business in the form of proprietorship or in the form of management of the firm where family members are working on crucial positions.
  • Family exercises the influence on the firm’s policy direction in the mutual interest of family and business.
  • The succession of family business goes to the following generation.