Canadian Family-Run Small Businesses, the most prevalent business type in the private sector economy, are increasingly undergoing succession planning, with the support of advisors. Yet, there is limited available research of their distinct characteristics, needs, behaviours, and actions as they navigate this critical business process.
This paper seeks to increase knowledge of and suggest improvements to succession planning for Canadian family-run small businesses and their advisors. Alongside a literature review, the paper provides three mini case studies of family-run small businesses in Ontario, Canada who are currently or have undergone succession planning within the last five years. It also incorporates the perspective of accredited advisors who provide succession planning services to Canadian family-run small businesses.
The paper unlocks three key areas of findings. First, the paper identifies that ownership, employee loyalty, family dynamics, and reliance on the business for income are distinct characteristics of Canadian family-run small businesses which influence their succession planning. Second, a proposed step-by-step process is shared for planning which starts when the successors are young, leverages sensemaking as a key planning tool, and recognizes the role of advisors in enabling stakeholders to reconcile economic and non-economic goals and complete the succession. Third, the paper stresses further efforts to understand the role of gender and advisory bias in the process as well as the emergence of interest amongst exiting Canadian-family run small business owners in employee ownership as a viable model.