Differences of opinion have recently arisen in Otsuka Kagu Ltd. regarding the matter of business succession, and management scholars are having irresponsible discussions outside the correct opinion, even though the correct solution or answer changes with time.
A more serious concern in the Japanese society is that there are not enough people to take over businesses, even though the companies want people to inherit them. The larger the number of employees, the wider the options for a successor. However, astonishing data indicates that 50% of small and medium-sized enterprises, which account for over 99% of enterprises, have no successors or have not yet chosen them.
The reason for this is that when the younger generation goes to college in Kanto or Kansai and gets employed directly after college, the basis of their livelihood is no longer their native place. Due to this, any information related to family circumstances gradually becomes unavailable. Although it was given a sudden choice to inherit or not the business due to the hospitalization of the father, this lead to the sale and liquidation of the family business due to lack of understanding about the business in an entirely unknown field.
This situation is particularly serious in the manufacturing industry and the Japanese economy will become hollower if there is no education on business succession. Actually, there is a topic on "family business" in MBA education and this lesson will make one think of how to take action on the inheritance of family businesses. The major issues are as follows.
- Who is the family business for?
- What is your role in the family business?
- Which part must be changed according to the changeover times?