International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue XII, December 2022|ISSN 2454-6186
Succession Planning and Sustainability of Family Owned Businesses in Lagos State
Rafee I. Tunde OLAGUNJU1, Issa ABDULRAHEEM Ph.D2, Zekeri ABU Ph.D2, And Abdulazeez Alhaji SALAU Ph.D3
1Postgraduate Student, Department of Business and Entrepreneurship, Kwara State University, Malete, Nigeria
2Department of Business and Entrepreneurship, Kwara State University, Malete, Nigeria
3Department of Management and Accounting, Summit University, Offa Kwara State, Nigeria
Absract: The majority of organized small- and medium-sized enterprises in Nigeria are family businesses, and family succession is a key factor in their growth and survival. In Lagos State, the study looked at how succession planning affected the viability of family-owned janitorial service companies. The study used a cross-sectional survey with a descriptive methodology to gather data from 145 cleaning service companies registered with the Cleaning Practitioners Association of Nigeria (CPAN) and operating in the state of Lagos. Primary data were collected for the study utilizing a standardized questionnaire. Tables were used to illustrate the data, and multiple regression was used to test the hypothesis. The study’s primary goal was to determine how succession planning affects sustainability. The study discovered that family-owned janitorial service businesses in Lagos State applied succession planning initiatives to a moderate extent. Very few of the companies showed any indication that they were conducting succession planning. The survey found that only a small number of organizations used various succession planning strategies, such as ensuring that work continues even without the founder, resolving conflicts, sharing vision, and educating successors. In order to promote a smooth transition from one generation to the next, the study advised family business owners to always encourage the capability and dedication of their successors by exposing them to training and involvement in the business.
Keywords: Business sustainability, Family Business., Succession planning, and Successor’s training.
I. INTRODUCTION.
Business owners and managers in Nigeria generally have to contend with unpredictable developments in the business environment. It is worse, for Small and Medium scale Enterprises (SMEs), a variant of which is the Family business enterprise [FBE]. Although a few of them have grown to become large scale corporates which no longer fit into the definition of SMEs either by turnover or by number of employees, they still remain family businesses. There is yet no universally accepted definition of the concept, however, there seems to be a consensus of understanding that sees a family business as a business outfit where at least two or more members of the same family come together to undertake economic activities which add value to a trade, process, or service. It is useful to note that Family membership its self is socio-culturally determined.