Succession of family business in Singapore

Abstract

Succession of family business is a very complex issue. However, it is very important because if badly handled, it can destroy both the family and the business. This report highlights the importance of family business to Singapore's economy, identifies the problems of succession and suggests some solutions that may help to solve these problems. A survey was conducted in family business concentrated areas to identify the trends of succession of family businesses in Singapore. The results of the survey show that family businesses in Singapore do face problems in Singapore. The common problems faced are: 1. inexperience of successor, 2. disinterest of successor, and 3. sibling rivalry. It also reveals that most family businesses in Singapore do not plan for succession. To curb these problems, the following recommendations are made: 1. Planning, 2. Marketing the family business, 3. Training, 4. Letting go of the business by the predecessor, and 5. Family support. If the above suggestions are taken, succession would be made much easier and conflicts between family and business would be greatly reduced. As a result, continuity of the family business would then be achieved.