Succession Planning in Family Businesses: A Strategy for Sustainable Growth

Abstract: Family-owned enterprises make an important contribution to employment, wealth creation, and economic development. Yet their long-term survival often depends on how successfully leadership passes from one generation to the next. Succession planning provides a deliberate framework for preparing future leaders, transferring experience, and reallocating managerial responsibility without disrupting the business. Against this background, the present study considers succession planning as a strategic foundation for the continuity and sustainable growth of family businesses. The study examines the succession practices followed by family businesses and assesses their association with sustainable growth. A quantitative design was used, with primary data obtained through a five-point Likert-scale questionnaire administered to 55 respondents connected with family businesses in Mumbai City. Descriptive statistics and Pearson's correlation were applied to the responses. The analysis identifies a strong, statistically significant positive association between succession planning and sustainable growth. Businesses with more systematic succession arrangements tended to report greater leadership continuity, knowledge retention, organizational stability, and prospects for long-term performance. The study therefore highlights the practical value of preparing successors early and managing leadership transition as an ongoing strategic process. Its findings may assist family-business owners, managers, and policymakers in developing succession arrangements that support resilience and continuity across generations.