A research related to determination of the problems faced in the term of succession process of management to the next generation in family business; and solutions of these problems

Family businesses are of great importance for national economies.It?s observed that companies that exist in economic lives of countries areto a large extent family businesses. An important part of countries? grossnational product is produced by family businesses.With the emergence of family business as an area of study; thequestion of succession has come onto the agenda. Globalized worldeconomy- and harsh competitive conditions as its consequence- arethreatening family businesses, which are important for nationaleconomies. To prolong life spans of family businesses and to ensuresuccession of businesses to next generations necessitate a process.During this process, problems will inevitably be encountered. Researchabout problems that occur in family businesses have shown that themain reason why continuity cannot be provided is evasion fromlaunching ?institutionalization? studies; although business has reached aproper size and the necessary conditions are mature. In this framework,the biggest handicap is, for different reasons, neglecting to do theplanning of ?succession planning?, which will help to determine andprepare the member of second generation that will take over thecharge/control/flag after the founder. Research have shown that lessthan 1/3 of family businesses can succeed from first to secondgeneration; and only half of them are able to see the 3rd. In this study,problems encountered in the succession process of family businesses areanalyzed and proposals for solutions are presented.Keywords : Family Business, Generation, Succession, SuccessionPlanning, Factor Analysis