Family businesses are unquestionably a pillar of the world economy. Its preponderance is confirmed by the millions of jobs created and by the contribution to GDP of each country. It is estimated that a significant majority of the world's business community is present in this area, encompassing small, medium and large companies, whether regional, national or multinational. They are the heart of capitalism and drivers of global development in the most diverse areas of activity.
Family businesses have characteristics that easily demarcate themselves from the others. Especially in the succession process, there are other factors than economic and management that have to be weighed to ensure its success.
Succession is a critical success factor, constituting precisely one of the most differentiating chapters between family and non-family businesses. It is where the interests and values of the family intersect (and frequently collide) with the needs of the company.
The existing studies are consensual in confirming that there are only a few companies that survive the passage of the second generation, and even more scarce those that surpass the barrier in the third generation.
For the foregoing, it is important to understand where and why family businesses fail in succession planning. Once this analysis is done, it is important to reiterate the importance of timely planning as an efficient solution to address the problems identified. It is necessary to respond to a set of complex issues and therefore clarify the steps that must be followed in order to do so.
The challenge is to anticipate the future by developing mechanisms for more than securing the company's longevity, ensuring that during that time they remain within the stable and prosperous family
