Determinants of 2nd and 3rd Generation Entrepreneurial Interest in Family Business Students of Universitas Pendidikan Indonesia Kampus Tasikmalaya

Abstract

The continuity of the family business is highly dependent on the presence of successors who are able to continue the legacy and vision of the company in the future. Therefore, the presence of a successor greatly affects the sustainability of the family business. However, not all children have the interest or motivation to continue the family business, so companies need to find innovative solutions to ensure its continuity in the future. The research was conducted to find out what factors influence the 2nd and 3rd generations to continue the family business. The object of this research is the 2nd and 3rd generation of the family business who are students of Universitas Pendidikan Indonesia Kampus Tasikmalaya. This research uses quantitative methods with a descriptive verification approach and sampling with purposive sampling techniques as well as using second order confirmatory factor analysis (CFA) as a measuring tool. The variables in this study are family harmony, parental role, business success and education level. Preliminary findings suggest that two main factors, family harmony, and business success, significantly impact the ultimate decision of the second and third generations to continue the family business. This research provides an overview that family harmony and business success influence the interest of students at the Universitas Pendidikan Indonesia Kampus Tasikmalaya, in continuing the family business.