The Succession Planning Practices Followed in the Family Businesses at Surat City

Abstract

This study delves into the intricacies of succession planning practices within family businesses in Surat City, aiming to assess the current strategies, pinpoint areas for improvement, and propose recommendations for heightened effectiveness. Family enterprises constitute a pivotal component of the economic landscape, and the study recognizes the pivotal role played by adept succession planning in ensuring their long-term prosperity. Through a meticulous methodology involving a sample of 150 respondents and structured surveys, the research examines demographic information and evaluates various succession planning facets such as communication, training, next-generation involvement, legal governance, and financial planning. The findings unveil strong positive correlations between effective communication and both training/development and next-gen involvement, further emphasizing the interconnected nature of these practices. Multidimensional Scaling (MDS) analysis visually maps the relationships, offering a nuanced perspective on the succession planning dynamics within Surat City's family businesses. The study's insights provide a comprehensive guide for family businesses in Surat City to optimize their succession planning practices. The positive correlations underscore the importance of a holistic strategy that encompasses communication, training, and financial planning.