Wealth: Journal of Islamic Banking and Finance
Vol. 3 No. 2 (2024)

Succession Planning For Family Business Sustainability

Fadlilah, Lilik Tanwirotul (Unknown)
Sholikha, Akhris Fuadatis (Unknown)
Muarrifah, Safrina (Unknown)
Mubarok, Husni (Unknown)
Lesmana, Hendra (Unknown)



Article Info

Publish Date
01 Dec 2024

Abstract

Although family businesses play a big part in Indonesia's economy, many of them do not continue into the next generation. Family businesses have several challenges, namely the lack of awareness regarding the importance of sustainability, the existence of myths related to differences in the successor generation also determines the sustainability of the business so that the existence of succession is a phenomenon of changing generations where the sustainability of the family business will be left to the sustainability of the company that guarantees it. This study examines the effect of succession planning on family business sustainability, with a focus on MSMEs in the Banyumas and Tegal regions. Quantitative methods were used to analyze data obtained through questionnaires from business owners. The simple regression results show, with an independent variable contribution of 86.9% to explain family business sustainability. This means that succession planning significantly improves the sustainability of businesses the variability of sustainability can be explained by 86.9% by succession planning. This study emphasizes the importance of education and training for the next generation as well as transparency in communication between owners and successors. The findings are expected to be a reference in passing on the family business with careful planning to ensure business sustainability. Suggestions for future research include expanding the scope of the business and using more varied research methods.

Copyrights © 2024






Journal Info

Abbrev

wealth

Publisher

Subject

Economics, Econometrics & Finance

Description

Asset management, Fund Management and Asset Pricing; Banking (Efficiency, Regulation, Risk Management, Solvency); Behavioural Finance; Capital Structure; Corporate Finance and Corporate Governance; Derivative Pricing and Hedging; Distribution Forecasting with Financial Applications; Entrepreneurial ...