Succession Planning For Family Business Sustainability

Authors

  • Lilik Tanwirotul Fadlilah Politeknik Damara
  • Akhris Fuadatis Sholikha Universitas Islam Negeri Profesor Kiai Haji Saifuddin Zuhri Purwokerto
  • Safrina Muarrifah Universitas Islam Negeri Profesor Kiai Haji Saifuddin Zuhri Purwokerto
  • Husni Mubarok Bina Sarana Informatika University
  • Hendra Lesmana Bina Sarana Informatika University

DOI:

https://doi.org/10.24090/wealth.v3i2.12604

Keywords:

succession planning, family business sustainability, msmes

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.

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Published

2024-12-01

How to Cite

Fadlilah, L. T., Sholikha, A. F., Muarrifah, S., Mubarok, H., & Lesmana, H. (2024). Succession Planning For Family Business Sustainability. Wealth: Journal of Islamic Banking and Finance, 3(2), 119–132. https://doi.org/10.24090/wealth.v3i2.12604

Issue

Vol. 3 No. 2 (2024)

Section

Articles

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Copyright (c) 2024 Lilik Tanwirotul Fadlilah, Akhris Fuadatis Sholikha, Safrina Muarrifah, Husni Mubarok, Hendra Lesmana

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