Strategic Alternative: Family Business Sustainability Based on Ownership and Management Distribution between Generations
Sugiyanto

Institut Manajemen Koperasi Indonesia (Ikopin)

Abstract

SMEs are expected to develop into large-scale enterprises, to achieve the scale required long-term period through cross-generation, Indonesia SMEs are owned and controlled by the family especially for small sole proprietorships that will never grow up be passed down from generation to generation, but many of them to be largest and most successful business. Growth of business is very dependent on the owner of as well as founder. This study is directed to formulate strategic alternative for sustainability of family business based on distribution of ownership, management and control between generation, using quantitative research method through direct observation to approximately 60 SMEs whose age is above 10 years, the analysis tool used is descriptive quantitative analysis. The results of the study indicate to maintain SMEs sustainability, needs distribution of ownership or share and distribution of share represent of business management and control among their children and close relatives.

Keywords: Business sustainability, ownership and management distribution

Topic: Financial Management and Accounting