A Profile of Succession Planning Among Family Business Owners
11 Pages Posted: 16 May 2013
Date Written: 2003
Using data from the 1997 National Family Business Survey, this study analyzed 673 family-owned businesses. Consistent with other studies, the findings indicated that only 20 percent had a written succession plan. Among 673 family business owners, only about 14% developed a net worth statement and 13% met with a financial planner or business consultant to discuss estate planning. Those family business owners with a succession plan tended to be older, worked longer hours in their family businesses, had fewer numbers of children, and had higher business management scores than did those business owners without a succession plan. Those who started their own business were less likely to have a written succession plan than those who inherited the business. Female family business owners were less likely to have a succession plan than were male business owners. Based on the findings, implications for financial counselors/planners and family business consultants are presented.
Keywords: Succession, Estate planning, Family-owned business
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