This study reports the results from a survey of 368 family-owned small to
medium size enterprises (SMEs) with regard to the importance, nature, and
extent of succession planning. By categorizing SMEs according to their annual
revenues, total number of employees, and number of family members
employed within the firm, significant differences were found between larger
and smaller firms. Consistent with extant literature, the findings reveal that
most family members join the firm for altruistic reasons. Issues related to
family relationships were rated as significantly more important in firms in
which more family members were employed within the firm. Moreover, for
firms with less than US$1m in revenues, a high priority is placed on selecting
a successor who possesses strong sales and marketing skills.