Factors effect succession of Thai SME family business in Thailand and important of succession planning.

Abstract

This paper aims to study succession of Thai SME family business transition and how succession planning would effect to the process of transition business to the next generation. Also, the research paper interested to identify causes of failure of the business transition which family business could learn and avoid being in the situation. In real life, operating business is essentially need well plan as sometimes minor failure is unacceptable which could lead company into severe and critical situation. This paper will help and guide family that plan for transition business on to the next generation by determining methods and approaches. This paper use qualitative approach by applying interview method, to be used as part of data analysis to answer the main research question of the paper. The results of the interview are based second generation successors of SME family businesses with age around 27-40 years old, from medium size enterprises. According to the interview family relationship, individual factors and governance factors are most likely related to success of business transition which related to succession planning process.