SUCCESSION AND PERMANENCE PROCESSES OF FAMILY SMEs BASED ON THE THREE-DIMENSIONAL OR GERSICK MODEL

Abstract

Family SMEs are key to the economy of many countries, including the Cuenca canton. They not only drive economic growth and employment, but also represent the continuity of family traditions and values. However, they face unique challenges due to the intersection of business and family interests. Successful succession and retention are critical to its long-term sustainability and success.

The objective of this study was to examine family businesses in the Cuenca canton using three-dimensional methodology (business, family and property) to understand their dynamics and challenges. The methodology involves collecting data from multiple sources, such as interviews and document analysis, to evaluate aspects related to business management, family dynamics and ownership structure in a sample of 329 family businesses. The results were tabulated in SPSS. The study revealed that these entities in the Cuenca canton face significant challenges in areas such as administrative management, the lack of clear succession policies and the need to balance family and business dynamics, specifically critical areas were identified to improve sustainability and 30 % indicates important problems in the relationship between family and business and possibly characterized by significant conflicts