Transgenerational Views on the Success and the Future Development of Family Firms in Slovenia

Abstract

Family businesses represent 60-80% of small and medium sized enterprises (SMEs) in Slovenia and many of them are approaching the process of succession in the next 5-10 years. This process depends on the values of both founding and succeeding generations. The aim of our study is to investigate transgenerational differences in values, attitudes and behaviours of the founders and their successors (family memebrs). Our study has revealed quite a different structure of life-oriented values, while business-oriented values are similar among generations. Also, the attitudes towards different aspects of family and business are quite similar, although the succeeding generation expresses desire for more freedom in its decision to join the family business or not. While generally the transgenerational differences in values, attitudes and behaviors do not seem to hinder the succession process seriously, these differences have to be taken into account by family business advisors in order to properly structure the succession process to the benefit of all stakeholders.