Founder’s Motivation for Succession of His Firm – Example from the Czech Republic
Founder’s Motivation for Succession of His Firm – Example from the Czech Republic

Summary/Abstract: The topic of family businesses and their importance for Czech economy is not sufficiently addressed in the Czech Republic. In order to run a family business in the long term, it is necessary that ownership and management must be successfully handed to younger generation. After the end of previous political regime about 30 years ago, in the Czech Republic, most family businesses were established. Nowadays, they are still managed and owned by generation of first founders and they can be replaced by their offspring. The aim of this paper is to find out what leads the outgoing generation to hand the company over to their offspring. Part of the paper presents the analysis of the results of already performed quantitative surveys among family businesses in the Czech Republic. For the research, qualitative exploration by the method of in-depth interviews with seven current owners was used. It was found that results are influenced by the fact what led respondent to start his/her own business. The effort to maintain a long family tradition, necessity due to the physical condition of the founder, the desire to engage in another business field, the attempt to establish a new tradition in the family and their own fatigue and awareness of the necessity of their departure are the main reasons leading to the transfer of the Czech family firms to the successors.

• Details
• Contents