Transitional Challenges Affecting Family-Owned Businesses: A Global View

Research has shown that businesses owned by family members have unique challenges both during the lifetime of the founders and at the time the founder has to pass on or when there is need for generational or transformational transition. But these findings have not been collated in such a way as to theorize the variables involved. This paper therefore seeks to analyze the independent variables that have great impact on the success or failure of transition in family owned businesses and thereby its survival. The paper emphasizes that survival of a family owned business is a strategic issue and cannot be left to fate if the firm is to survive the transitional challenges that befall most if not all family businesses. The researcher identified strategic planning, organization structure, succession planning, and resource capability as the independent variables that determine successful transition of these firms. A desk survey was conducted with the world wide population of family businesses. Purposive Sample of family owned businesses was taken; Secondary Data was extracted from books, journals, newspapers, and internet resources; Content Analysis and Descriptive Diagrams were used to analyze the findings. The researcher has presented his findings which will be useful to owners of family businesses and the governmental planners as well. Further research has also been recommended.