Wealth Management: Why do small and medium enterprises (SMEs) need succession planning?
One of the most difficult issue you may face as SME is how to divide your business among your next-of-kin.
It is a sensitive issue and an early planning can help avoid the problems that may arise later.
According to statistics collected by the Family Firm Institute of Brooklyn, Massachusetts, "nearly 70% of all family firms fail before reaching the 2nd generation, and 88% fail before the 3rd generation; only about 3% of all family enterprises survive to the 4th generation and beyond."
Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)
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