Succession in woman-owned family business

Kuva Margit Mannila

Birley, Sue (1986). Succession in the Family Firm: The Inheritor's View. Journal of Small Business Management, Vol. 24, 1986. (Link)

Cadieux, L., Lorrain, J. & Hurgon, P. (2002). Succession in Woman-Owned Family Business : A Case Study. Family Business Review, 15(1), 17−30. (PDF)

Other extraordinary findings detailed in this study on women-owned family businesses:
  • Women-owned family firms have a 40 percent lower rate of family member attrition. 
  • Female-owned firms have focused carefully on CEO succession planning, and 49 percent of women owners have named a successor compared with 40 percent of male owners. 
  • Female-owned firms place greater proportionate emphasis on philanthropy directed toward educational and community organizations. 

Additional current insights come from the Center for Women's Business Research in its in December 2006 biennial update on information on women-owned businesses under the section titled "Exit Strategies of Women-Owned Businesses":
  • Women business owners in nontraditional industries are more likely than men to have inherited their business from their mothers (17 percent versus 2 percent) and more likely to plan to pass it on to their daughters (30 percent versus 11 percent). 
  • Eighty-five percent of both women and men rank price as the most important factor when planning on selling their business. 
  • However, women are more concerned than men with the buyer's plans for the business (79 percent versus 52 percent) and the buyer's plan for current employees (86 percent versus 61 percent). 
  • Women business owners are nearly twice as likely as men business owners to intend to pass the business on to a daughter or daughters (37 percent versus 19 percent). Source: Celebrating women in family-owned businesses: Does gender make a difference? By: Peggy Eddy, CFP Published Date: March 29, 2007. 
Keanon Alderson PhD Women are playing large role in family-owned businesses.