A Study on the Succession Planning of Family-Owned Agritourism Enterprises in CALABARZON

Date

5-2019

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Agnes T. Banzon

Committee Member

Mar B. Cruz, Renen Szilardo G. De Guzman, Jeanette Angeline B. Madamba, Normito R. Zapata, Jr.

Abstract

There is continuous support and endorsement made by the government to support the tourism industry in the Philippines. In the tourism industry, the Department of Tourism (DOT) is specifically promoting the agritourism sub-industry in the Philippines because it provides rural employment and profit opportunities for farmers while securing clean and healthy food for the community. Furthermore, DOT has endorsed 12 DOT accredited agritourism enterprises in CALABARZON to support the local community and small-scale farmers. From the words of the president of the International School of Sustainable Tourism (ISST), Dr. Mina Gabor, venturing in agritourism is a means for attracting the youth in going back to their families and involving themselves in agriculture. She added that involvement of the youth in the management of their farm has improved the finances of their produce in keeping the prices of their produce competitive and the marketing of their farm to cater a wider market.

This study assessed the succession planning of family-owned agritourism enterprises in CALABARZON. It presented the socio-demographic profile of each agritourism enterprise, its owner, and its prospective successor, identified the factors that affect the succession planning in agritourism enterprises, explain the issues and challenges of succession planning in agritourism enterprises, and formulate recommendations that address the issues and challenges.

A total of seven agritourism enterprise owners and four prospective successors of their respective agritourism enterprises were interviewed for the study. A descriptive analysis was used to assess the internal factors that contributed to the succession planning of the agritourism enterprises.

For the result, it was found that most of the founders of the agritourism enterprises involved themselves in agriculture as a part of their retirement plan. Furthermore, the agricultural land that they own were not initially an agritourism enterprise, but because of the opportunity that they have recognized and the endorsement of the government, they have converted their farm operations into an agritourism enterprise to generate higher profit since agritourism attracts more customers compared to the traditional ones.

Regarding the succession of the agritourism enterprises, it was found that all owners are looking for their successor only from within their family, more specifically their children. They also aspire that the successor should have the same interest and passion for the enterprise, for the successors to successfully continue their enterprises. Another reason is their aspiration for their legacy to be honored because of the investments that the owners and family have made for the establishment and the value of the enterprise for the family.

From the perspective of the successors, the understanding on how valuable the agritourism enterprise is for them is one of the factors that will allow for them to accept the succession and continue the enterprise. Furthermore, the successors should also see themselves involved in their family’s agritourism enterprise as a viable career path in their lives, which normally manifests during their years in high school and college. Lastly, the knowledge and mastery with the operations of the agritourism enterprise is also a motivating factor for the successors in preferring to work in their family’s agritourism enterprise and to continue the legacy of the owner.

By correlating the perspectives of the owner and prospective successor, seeing the value and impact of the enterprise, recognizing that being an owner is a career, mentorship of the owner to the prospective successor, exposure of the prospective successor in the operations, and developing the managerial and leadership skills of the prospective successor are the factors that affect the succession planning of the agritourism enterprises.

This study provided recommendations that could help in the acceptance of succession in agritourism enterprises. To have an acceptance of the succession, the owners should be able to identify a successor and to implement the succession procedures as early as possible, emphasize the value of the enterprise and its impact, and convey that they are the mentors and leaders of the prospective successors.

Language

English

LC Subject

Tourism industry, Business planning

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2019 M17 D85

Notes

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Document Type

Thesis

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