A Life Course Approach
to the Entrepreneurial Family (Part II)
by Phyllis Moen
A Research Agenda
Taking into account timing, process, and context, the study of family business from a life course perspective becomes an investigation of pathways, of the connections between different phases of life, and how circumstances in early adulthood may affect choices and resources later on. Retirement is a case in point, with labor force experiences throughout adulthood affecting both the timing of retirement, post-retirement economic resources, and the likelihood of launching a new family business at this life stage.
Key research issues from a life course perspective include: More…
Management Succession Issues
in Family Business (Part II)
by Bernard L. Erven, Professor and Extension Specialist
The Characterization of Effective Successions
The empirical data and anecdotal evidence are overwhelming on failure in the second and third generations of family business that were successful in the first generation.Buchholz and Crane report that 30% of family businesses in this country survive to the second generation and only half of these first generation survivors make it to the third generation.(Buchholz, p. 15)An obvious challenge to family business extension programs in human ecology and agricultural sciences is to alert family businesses to the keys for continued operation.
Handler (1994) reviewed the literature on effective successions.She wanted to answer the question, What characterizes them?Not surprisingly, she reported characteristics of effective successions from a diverse set of research reports rather than a conclusive set of guidelines for success.Following are five actions for management succession success consolidated from her list of more than 15 factors extracted from the research literature on management succession: More…