The beginning of the year is also the time of a new start in the generational change

By: Trademagazin Date: 2024. 01. 25. 11:51

The managers of companies founded during the regime change are slowly retiring, and the time has come to hand over the baton to their successors. This process is generational change, but in many cases the managers of enterprises do not think about it in time. However, the beginning of the year is a good time to start the transition of companies.

According to Opten data, there are currently around 153,000 family businesses operating in Hungary, which is around 40 percent of domestic companies. Family businesses account for half of Hungary’s GDP and 75 percent of the domestic workforce, and in light of this, it is a particularly important fact that tens of thousands of these businesses may be left without a manager when their owner retires. However, the majority of domestic companies do not have a succession strategy, and the year-end period usually increases the resulting tensions. The question of succession would be crucial in the life of a family business, but today it is still treated as a taboo by the owners.

“The beginning of the year is the time for the preparation of strategic plans in the life of companies and also a great time to start discussing succession issues. The Christmas and holiday season is usually full of tension and is not the right time to agree on a succession. However, January-February may be the right time for the company manager and the successor to have the first conversation on the issue of generational change.”