“The Study of Succession Planning in the Family-Owned Manufacturing Firms of Gokul Shirgaon and Shiroli MIDC in Kolhapur District.”

Abstract

The family business is the backbone of the economy. The expert states that nearly 85% of businesses across all sectors of the economy are owned, managed, and controlled by family members working together in the industry. These businesses contribute the most to the country's GDP. It is a well-proven and accepted fact that family-owned businesses can’t succeed in terms of succession. The succession is a challenging process. It is observed that only 50% of 2nd-generation, 12% of 3rd-generation, and 4% of 4th-generation family businesses survive. Thus, succession planning involves many challenges. Therefore, needs to be executed very keenly.  In this regard, the owner must observe clarity in transferring business operations to the next generation.