FACTORS RESPONSIBLE FOR FAILURE IN SUCCESSION PLANNING AMONG FAMILY BUSINESSES IN NIGERIA

Abstract

Family businesses are a common form of entrepreneurship in Nigeria, but they often struggle with succession planning. This paper examines the challenges of management succession in Nigerian family businesses. The objective is to address the role of the founder, the prospects of the next generation, succession as a process, reasons for failed succession plans, and the characteristics of effective succession.

The study was conducted using a combination of primary and secondary data. Primary data was collected through questionnaires and interviews with owners of 10 family businesses in Zaria, Kaduna State, Nigeria. Secondary data was gathered from textbooks, journals, and online sources to further identify reasons for failed succession in Nigerian family firms.

The key finding of the paper is that unfair treatment of family members by the founder is a major obstacle to successful succession. The paper recommends that family business owners should handover their enterprises to more competent next-generation members who can ensure the continued operation of the business.