As per a recent survey conducted by PwC and the Singapore Chinese Chamber of Commerce and Industry, 65 per cent of family businesses in Singapore are of the opinion that attracting talent is the biggest challenge, followed by succession planning. These results are important considering that over a third of Singapore’s family businesses in Singapore are in their first generation, and 54 per cent in their second.
Although some family business owners intend to hand over management of the business to the family’s next generation, yet many of the next generation are not interested in taking over the business because of better career options and opportunities. To meet this challenge, survey respondents said they were trying to provide internships, as well as allow diversification into new areas of business in an attempt to interest the next generation. Respondents also said they are increasingly likely to bring in more talent from outside the family to professionally manage the business; with about half saying this is part of future plans.