Strategies for Succession Planning and Sustained Business Profitability for Small Business

College of Management and Human Potential
Virtual Symposium
October 27-28, 2022
Presenter:
Dr. Icy Mae Barton
Session Description:
Baby boomers are retiring rapidly and vacating prominent small business positions, leaving no one to replace them, which may result in business failure. When a small business fails, all stakeholders, including small business owners (SBOs), investors, employees, customers, and the community, suffer emotional and financial distress. Grounded in Argyris and Schön's organizational learning theory and Burns's transformational leadership theory, the purpose of this qualitative multiple case study was to explore strategies SBOs use to develop an effective succession plan. The participants were seven SBOs in the Washington, DC/Baltimore, MD metropolitan area who had been in business for more than 5 years and successfully transitioned the business to a second- or third-generation owner. Data were collected from semistructured interviews and a review of company documents. Data were analyzed using Yin's five-step and thematic analysis. Three themes emerged: planning for the future, developing and training personnel, and strategies to overcome barriers. A key recommendation is that SBOs create a succession plan when starting a business. The implications for positive social change include the potential continuity and sustainability of small businesses, which may lead to job opportunities and improve families’ livelihoods in local communities.