The Succession Process in Family-owned Businesses – the Case of German Company
The Succession Process in Family-owned Businesses – the Case of German Company

Summary/Abstract: In almost all countries, family-owned companies are the backbone of the economy. Family businesses face complex challenges, involving not only business and investment decisions, but also ownership issues and family relationships. Most family-owned companies struggle to survive beyond a single generation. Worldwide, only one out of three family businesses makes the transition successfully from the one generation to the next. Family businesses are vulnerable at times of transition in leadership, when there is often a conflict between the desire to maintain and respect tradition and the need to adapt and progress the business in response to its changing environment. The aim of this paper is to show how family owned businesses prepare new leaders based on German family business case study. This paper is a conversation piece, which highlights the ways in which human resources management, especially next generation leaders, might be handled.

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