New PNC Research Reveals Top 6 Barriers Entrepreneurs Face in Succession Planning |
New PNC Research Reveals Top 6 Barriers Entrepreneurs Face in Succession Planning
The challenge of succession planning isn’t new. But founders have more solutions at their fingertips than ever before.
BY MELISSA ANGELL, SENIOR STAFF WRITER @MELISSKAWRITES
Succession planning continues to be a thorn in the side of American entrepreneurs.
New research out from PNC Bank on Wednesday shows a majority of small businesses (84 percent) recognize the importance of solidifying a succession plan, yet a third have yet to do so.
The top barrier entrepreneurs cite is the unknown, with 25 percent of respondents sharing that the main barrier to succession planning for them is simply not knowing who will be the next in line. The rigor of entrepreneurship and managing daily operations was the second barrier (19 percent), while family conflicts (15 percent) clocked in as the third.
“The main barrier [to ownership succession] is not knowing all the money laws and tax rules for different ways to leave … Giving in to a long plan in writing seems too much to handle,” reported one fourth-generation business owner who was featured in the report.
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Thirteen percent of respondents reported the complexity of the process as the next top hurdle, while financial uncertainty (12 percent) and long-term business goal uncertainty (10 percent) rounded out the challenges in succession planning.
Three hundred companies participated in the digital survey, which was circulated for a one-month period ending in mid-December.
The issue is expected to become more pressing among an aging population. Separate research from Deloitte released last month shows that 78 percent of family business executives are bracing for a CEO transition in the next 10 years.