Factors that influence offspring intentions to join the family businesses: Evidence from Zhejiang, China

Succession is vital for the survival of family businesses. Recent research reveals that while the incumbent often avoids preparation for succession, he generally assumes and desires his son or daughter will join and take over the firm one day. However, the offspring intentions are unknown. This study explored the intentions of 18–28 year-old university students in seeking employment and the reasons for which they would join the firm in Zhejiang Province, China. The data from 103 participants showed that only 36 percent of the participants intended to join their parents' businesses. The empirical results demonstrated the important relationship between firm size and offspring intentions, and found no such relationship between offspring birth-order or gender and offspring intentions. Self-actualization needs and business development expectation were the most two important factors that influenced the participants' intentions. Based on these findings recommendations for successful succession were offered.