Succession Management in Woodcarving Businesses in Paete, Laguna

Date

5-2017

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Agnes T. Banzon

Committee Member

Loida E. Mojica, Arlene C. Gutierrez, Dinah Pura T. Depositario

Abstract

The paper is about the succession management of woodcarving businesses in Paete, Laguna. It presented the socio-demographic profile of the owners and the potential successors of family-owned woodcarving businesses in Paete, Laguna. Also, the paper examined the profile of the woodcarving businesses and their owners’ and successors’ readiness towards succession. Moreover, it identified and discussed the problems and succession issues in family-owned woodcarving businesses. Lastly, the study formulated potential solutions to the identified succession problems and issues.

Descriptive analysis was employed to discuss the socio-demographic profile, woodcarving business owners’ and successors’ readiness and willingness in relation to business succession and the data gathered pertinent to family succession such as succession problems of family-owned woodcarving businesses. Primary data were collected through personal interviews with the business owners and the potential successors. Considering the hectic schedule and the willingness of the business owners and the potential successors to participate in the interview, only 25 of the 32 woodcarving business owners and 7 of the 11 successors agreed to be interviewed.

The conceptual framework of the study was based on Isaiah, Minai, and Lucky (2011). It was selected because it was the most complete and it was able to capture the important variables, namely, internal and external environment, owner, potential successor, succession process and successful succession in relation to business succession which can further help in assessing the business succession in Paete, Laguna.

The gathered information through interviews inferred that most of the business owners were aging since 56% of the respondents were above 50 years old. Only 4 out of 25 respondents attended training programs conducted by the Department of Trade and Industry. Moreover, 48% of the respondents had a college degree which was relevant to the business. First generation owners comprised of 68% of the total number of respondents. Lastly, half of the business owners required their family members to get involved in the woodcarving business.

For the potential successors, half of them were in their mid-20s and all of the seven identified successors were willing to take over the business. The important issues identified were three out of the seven potential successors were too young to take over the business in the next ten years. In addition, there were few successors identified by the business owners.

In measuring the readiness of the business owners, three aspects were considered: succession planning, strategic planning, and transfer of ownership. The results showed that most of the business owners were planning about the ownership succession of the business. Also, the business owners had written strategic plans and had been communicating to family members, staff and advisers. There was a low possibility of extending the business to a non-family and most of them did not have written strategic plans for the transfer of ownership to the next generation.

Further, the successors’ readiness towards succession was measured by the following: readiness in management of woodcarving business, skills and knowledge in relation to business and survival in transition of family business. The results showed that the identified successors were confident to take over the business, had the skills in woodcarving and managing the business and were confident that the existing family dynamics would be maintained throughout and after the transition.

The fourth objective tackled the problems in family-owned woodcarving businesses. The following were the identified problems in finance, personnel, marketing and production: absence of a book keeper or accountant; loss of interest of the workers in their jobs; difficulties in introducing the products to customers; and delayed production.

Finally, potential solutions were formulated. A written strategic plan for the transfer of ownership for a more systematic management of the business should be prepared. The business owners should train and educate the identified minor successors as early as possible and let them realize the importance of the woodcarving business in order to build-up the latter’s interest in the business. Trainings on woodcarving and effective business practices should also be provided to the workers and employees.

Language

English

LC Subject

Wood-carving, Family-owned business enterprises--Succession

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2017 M17 M36

Notes

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Document Type

Thesis

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