Bumiputera-Owned Small and Medium Enterprise Family Business Succession Plan: A Review

Transgenerational entrepreneurship entails the proactive development of a self-sustaining family-owned business that can be passed down through multiple generations, whereas family business succession refers to the transfer of business ownership and management to the next generation through inheritance. Choosing a successor in small and medium-sized enterprises requires a more comprehensive approach than in larger corporate firms due to fewer potential successors. The purpose of this research is to identify the challenges and factors that incumbents must consider when selecting a successor and implementing a succession plan. The study identifies challenges such as the involvement of an informal family member in the selection process, internal conflicts between the family and the business, the incumbent’s attachment to their leadership legacy, and the successor's readiness to assume responsibility. When it comes to succession planning, education, competence, demographic factors, relationships with family members and incumbents, experience, integrity, birth order, and primogeniture are all important factors to consider.