An Overview of Challenges Faced by Second Generation Business Successor

• Main Authors: YU, MEI-YIN, 余美英
• Other Authors: CHIANG, AI-HSUAN
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/jjnx85

碩士 === 銘傳大學 === 國際企業學系碩士在職專班 === 107 === Family firms play a very important role in global business and are a common ownership model. As the founding generation ages, family businesses inevitably have to transfer power. Therefore, family businesses are must examine succession issues involving the older generations of entrepreneurs and the new generation of their successors. In Chinese family businesses, the average market value of the firm will shrink by 60% throughout the multi-year inheritance process. About 70% of Taiwan's listed companies are family controlled, but very few have clear succession plans to transfer power. The first-generation entrepreneurs must consider the continued sustainable operations and development of the enterprise when they transfer power to their successors. This paper explores the dilemma of the first generation of Chinese family entrepreneurs who decided to pass their business to the second generation. Through interviews with the first generation and their successors, we will understand the issues that are encountered during the inheritance, and then examine solutions. This paper examines four factors that affects generational managerial transitions. These four factors are: level of education, social skills, work experience, and factual knowledge. This paper will help and provide insights for smoother transitions for future successors.