ABSTRACT
Since 1975, Lebanon’s economy has been disrupted by many political and security challenges as civil war, sectarian tensions, etc. The socioeconomic environment at this country encourages mainly the family business. The outmoded labor law, the slightly diversified financial sector and the difficulty to obtain business licenses undermine the development of the market to limit the investment opportunities of international companies. Lebanon actively supports the family business as job creators to overcome the high rate of unemployment and brain drain at the country.
Most of the Lebanese owners at the family business are wondering now if their way of managing their business is up to the increased challenges of the market from the sophisticated consumer behavior to the necessity of differentiation. In addition, the ownership succession planning becomes an urgent matter for them since most of family business companies are now at their second or third lifetime stage.
We assess at this paper the factors that are explored at the literature review and that may be influencing the family firms in Lebanon as the relationships issue, the gender issues, and the ownership and management transfers. We demonstrate that family businesses in Lebanon struggle with the challenges explained at the literature review but no sufficient plans are adopted to ensure survival and successful continuity. The transfer of ownership of family business in Lebanon becomes one of the most important challenges of the owners at a work environment where the only constant is the change. The decision is more complicated than a simple practice of passing on property. It needs a strategic management of a well prepared plan to facilitate the transfer to the successors who are the most able to sustain the success of this sector which constitutes 85% of the economic force in Lebanon.
Keywords
change, succession, transfer of ownership, strategic management.