70th International Atlantic Economic Conference

October 11 - 13, 2010 | Charleston, USA

Determinants of the Intergenerational Transfer of Ownership in Family Businesses in Poland

Tuesday, October 12, 2010: 9:30 AM
Janusz Kornecki, Ph., D. , Department of Entrepreneurship and Industrial Policy, UNIVERSITY OF LODZ, FACULTY OF MANAGEMENT, Lodz, Poland
Elzbieta M. Roszko, M.Sc., M.A. , Department of Economic and Social Statistics, University of Lodz, Faculty of Economics and Sociology, Lodz, Poland, Poland
Intergenerational business transfer is often a critical event in the life cycle of any firm. If the firm is small- or medium-sized and family owned and controlled the problem of succession process is even more important. According to European Commission reports business transfer is going to take place in 30% of the European firms within 10 years. This process could affect up to 690,000 small- and medium-sized enterprises and 2.8 million jobs every year. In 1996, the European Commission estimated that 30% of these enterprises will disappear because of inadequate business succession management.

This paper presents the results of two surveys carried out recently in Poland with an aim to identify critical factors of intergenerational succession within Polish family businesses. Further, it explores succession as a strategic goal and potential source of changes in small- and medium-sized enterprises. The studies show that succession in SMEs is not perceived as a process that requires long-term preparations.