Family Business Dilemma: Who Will Inherit?

Abstract

This case identifies cogent human resource (HR) issues that are related to succession planning an entrepreneur in small family business should take cognisance of to guarantee strategic business success and sustainability. The case highlights the challenges encountered by Mr Farid in ensuring successful transition of the family business to the next generation. Mr Farid has always been motivated, enthusiastic and committed to the continuous growth and survival of his business. His company, 5Ds manufactures varied and robust array of classy designs of steel grills, windows, doors, house/office cabinets and other allied services. As age takes it toll on his ability to continue to manage the business; the 74 year old Farid struggles to craft a successful transition plan in the event of his retirement or death. He has been actively mentoring and engaging family members in the management and administration of the business towards future transition of ownership and positions to no avail. Thus, he is overwhelmed and worried that a  successful transition of his businesss to the next generation is getting bleak. The case is aimed at providing opportunity to study and understand succession and challenges faced by most small family businesses. Importantly,  it is also aimed at emphasising how it can be efficiently and effectively addressed to guarantee sustainable growth and sucess of family-based businesses in the context of Malaysia’s economy.