Sustaining Family Business: Challenges and Strategies in Succession Planning

The sustainability of family-owned businesses depends on succession planning, especially in developing nations like India where founder-centric control and informal leadership transitions are still common. This study looks at the challenges and strategies that family businesses in Tamil Nadu's Coimbatore District face when it comes to succession planning. 150 respondents' data was gathered using a structured questionnaire, and correlation, regression, and path analysis methods were used for analysis. On the other hand, succession effectiveness is positively and significantly impacted by strategic practices, such as early grooming, successor mentoring, and structured governance. The path model indicates to the significance of strategic preparedness in reducing risks and improving succession results. These findings highlight the necessity for family businesses to implement legally binding, proactive measures in order to guarantee long-term stability and leadership continuity.The sustainability of family-owned businesses depends on succession planning, especially in developing nations like India where founder-centric control and informal leadership transitions are still common. This study looks at the challenges and strategies that family businesses in Tamil Nadu's Coimbatore District face when it comes to succession planning. 150 respondents' data was gathered using a structured questionnaire, and correlation, regression, and path analysis methods were used for analysis. On the other hand, succession effectiveness is positively and significantly impacted by strategic practices, such as early grooming, successor mentoring, and structured governance. The path model indicates to the significance of strategic preparedness in reducing risks and improving succession results. These findings highlight the necessity for family businesses to implement legally binding, proactive measures in order to guarantee long-term stability and leadership continuity.