EFFECT OF SUCCESSION PLANNING ON FAMILY BUSINESS SURVIVAL

AJIDE, MUYIWA SUNDAY (2022) EFFECT OF SUCCESSION PLANNING ON FAMILY BUSINESS SURVIVAL. Masters thesis, Landmark University, Omu Aran, Kwara State.

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Abstract

Succession planning is critical to the long-term viability of the family-owned enterprise. Most family-owned businesses fail to survive the transition to the next generation, leading to the death of several family-owned businesses in Nigeria. Consequentially, the resultant effect is a nationwide decline in the small and medium enterprise (SME) sector. This study explores the effect of succession planning on family business survival in Ilorin, Kwara State, Nigeria.Family system theory and Leadership model succession theory were used to explain the effect of succession planning on family business survival in Ilorin, Kwara State, Nigeria. The use of questionnaires was employed to collect primary data from the respondents. The study used simple random sampling to select the questionnaire respondents. Descriptive analysis and multiple regression analysis were used to analyse the data. Findings revealed that Mentorship has a significant effect on family businesses’ survival, Gender has a significant effect on family business survival, training has a significant influence on family business survival, and entrepreneurship orientation significantly influences family business survival. Based on the findings, the study recommends that Owners of family businesses adopt a strong mentorship culture to prepare successors for leading the business in the future. It suggested that Entrepreneurial orientation should be encouraged amongst family-owned businesses; this will ensure the business's survival in the event of the founder's demise. It also recommended that gender bias should not be a criterion for choosing a successor in businesses as it does not determine the survival of family businesses. Furthermore, the study proposed that adequate training programs should be put in place for the development of employees and family members; this will positively influence the survival of the family business KEYWORDS: Succession Planning, Entrepreneurship Orientation, Mentorship, Business Survival, Family Business

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