Succession of Family-Based Small Businesses (Case Study at the Traditional Pottery Industry Center in Pulutan Village, North Sulawesi)

Abstract

Family Business is a form of business that involves some family members in the ownership or operation of the business. Problems that often arise in family businesses, especially the issue of professionalism and business inheritance from the previous generation to the next. The effort to find a successor who will become a leader in a family business is not easy and requires a long time. This study focuses on the process and strategy of entrepreneurial succession in the effort to exist small family-based businesses by taking a case study background in the traditional pottery craft business center in Pulutan Village, Minahasa Regency. Specifically, this study reveals: a. the process of business succession in the context of the existence of family-based businesses, b. sources of media for acquiring knowledge to carry out succession, c. who is involved in business succession, and d. factors that support the implementation of business succession. The results of this study indicate that the succession process within the framework of the existence of family-based businesses occurs in several stages, namely: (1) pre-business stage, (2) introduction stage, (3) implementation and development stage, and (4) maturity and pre-succession stage. The sources of media for acquiring knowledge and being involved in succession consist of: (1) Parents as the main media, (2) friends/members of craftsmen groups, and (3) the government.