2022 Volume 19 Pages 91-112
The business succession of SMEs is becoming a serious issue, increasing number of business successions to women, which are often carried out with less management experience and no preparation period, so it is necessary to create an environment that promotes post-succession business growth. Preliminary research revealed inhibiting factors to include lack of management experience due to inadequate preparation time, limited time to manage the business due to juggling housework and childcare, and the scarcity of role models. An analysis of the differences in characteristics between male and female successors revealed significant differences in corporate age, number of employees, and managerial age. This study analyzed the financial data of 400 SMEs with female successors, using probit regression and multivariate analysis to measure the differences in corporate performance between intra-relative and non-relative succession and companies’ characteristics. Results showed that (1) companies succeeded to relatives were older in corporate and managerial age, and smaller (capital and employees); (2) sales and net income were lower, and profit margins tended to be negative, while the sales per employee tended to be higher; and (3) the higher the number of employees, the more profitable the company. In conclusion, female successors, who tend to be strong on increasing staff numbers and staff development, may be a positive for business growth.
