Perceptions and Challenges in the implementation of Succession Plan and Family Protocol in Businesses in Siguatepeque, Honduras (#494)

Authors

Rivera García, Mirna

Del Cid, Javier

Abbott Haim, Margaret

Osorto, Henry

Abstract

Abstract—Family businesses account for around 70% of the gross domestic product in Honduras. The objective of this study was to analyse the perceptions of both owner-founders and successors of family businesses regarding succession plans and family protocols. The methodology used was a mixed approach: exploratory-descriptive, cross-sectional, and non-experimental. The sample for the survey was non-probabilistic; 91 companies out of a universe of 844 companies according to the database of companies profiled in the business mapping conducted in 2022, and 10 representatives of family businesses participated in the focus group. The results of the survey indicate that 57% of the family businesses have family members in the company. 9% do not involve family members in the operation of the business. 53% of the family businesses do not have a formal succession plan, 8% have informal succession agreements that are not documented, and only 4% admitted that they have formalised the succession plan. The focus group revealed a strong link between family and business; when family members are in harmony, it is easier to make decisions and prepare for change. In conclusion, the absence of succession protocols and inadequate governance pose a risk to the future generation of family businesses.