Saturday, December 18, 2010

Estate Planning and the Economic Legacy of the Entrepreneurial Spirit

There are various methods by which assets can be bequeathed by a would-be-decedent to his inheritors. A business enterprise, however, may need to be ported across generations through a corporate mechanism, since issues on estate taxation, business stability, asset partitioning, and continuity may arise. Indeed, successful and profitable businesses are worth preserving. Businesses are a class apart from simple independent assets since they are coordinated amalgams of assets that are intertwined by systems, processes, management, and human resources. Furthermore, they are critical to the national economy because they provide employment. The entrepreneurial spirit and the middle class are the backbone of a capitalist and democratic economy. Continuity of the economic legacy is an incentive to all those who choose to pursue an entrepreneur's profession. This naturally involves skills in spotting opportunities, innovation, management, and a visionary's disposition, without these, the standards of living will not progress and industries will remain stagnant.

Succession planning via a corporation allows the abstracts of entrepreneurship to survive through generations. Although the passing-over of the economic legacy is a given, the most important aspect of succession planning comes with the progress of the socio-economic framework of the country through the enabling auspices of the leaders of commerce and industries.

All compositions, statements and opinions of the author are copyright © Earl T. Malvar 2009-2010. All rights reserved. There is no honor, respect, admiration, intellectual and academic dignity garnered through plagiarism.

No comments:

Post a Comment