Succession Planning and Sustainability of Small and Medium Enterprises (SMEs) in South East, Nigeria
- September 3, 2020
- Posted by: RSIS Team
- Categories: IJRIAS, Social Science
International Journal of Research and Innovation in Applied Science (IJRIAS) | Volume V, Issue V, May 2020 | ISSN 2454-6194
Succession Planning and Sustainability of Small and Medium Enterprises (SMEs) in South East, Nigeria
Osita, Fabian Chinedu1, Kekeocha, Mary Ezinne2, Ojimba, Chigozie Chinonso3
1&2Department of Business Administration, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
3Seplat Petroleum Development Company Plc, Warri Delta State, Nigeria
Abstract: The study investigated sustainability of Small and Medium Enterprises (SMEs) in South East Nigeria. The population was 1000 owners of SMEs selected from the two major markets in the region. Survey research design was adopted by the study. The instrument for data collection was a self-structured questionnaire which underwent both face and content validity and was also put through Crombach Alpha reliability test with an Alpha value of .837. Regression analysis was used in analysing the data gathered in the cause of the study and hypothesis was tested at 5% level of significance. The result indicated that most of the businesses are still in their first generation. From the hypothesis test, it was revealed that there is a statistically significant relationship existing between mentoring and continuity of SMEs in the selected markets in the area studied (r = .933; R2 = .871, F = 6562.226; p-value < 0.05). Following this finding, it was concluded that mentoring people to take over the business at the retirement or demise of owner/founder gives a fillip to business sustainability. It was therefore recommended among other things that business owners need to start the mentoring process of successors early so as to get them equipped for the role of management and leadership in the business in the event of demise or retirement of the owners.
