An overview of the situation and solving of succession problem involving small and medium-sized family firms

Abstract

The aim of the article is to draw attention to described problems connected with the succession and generational exchange, discuss possible solutions and indicate what kind of losses might originate if and when these problems of family firms and respective organisations are not examined at all. The author explores how family firms can be characterised and the general position of family firms in the economy. The solving of the succession in the family business was identified as the greatest problem and a proposal for solving this dilemma is analysed in detail in the article. Despite the fact that family firms have various shapes and sizes, the vast majority of family firms consist of small and medium-sized businesses. The solving of the problem of succession is an interdisciplinary theme on the border between management and sociology. Family firms share numerous problems with non-family firms, however, family businesses differ from other kinds of businesses in that they have to come to terms with a generational transition in the leadership of the family business. This consists of an extremely important moment in the life of each family company and has to be planned and performed properly.