Succession Planning and Family-Owned Business: An Assessment of Impact on Selected Family-Owned Business

Abstract

This paper is succession planning and family–owned business:an assessment of impact on selected family-owned businesses. Furthermore, the study assesses the relationship between mentoring and sustainability of selected family-owned business in Ibadan. It also evaluates the differences between roles modeling on survival of family-owned business in Ibadan, and finally to find out the differences between training and development on growth of family-owned business in Ibadan. The study employed survey research design. The population for this study consists of all staff of selected family-owned business in Ibadan. The total number of 140family business owners/founders was calculated using Taro Yamane’s formula, thus a target population of 215family business owners/founders. The findings of the research showed that mentoring leads to increase in sustainability of selected family-owned business in Ibadan (β = 0.140 P = ≤0.05). Also, the value of coefficient (β = 0.868 P = ≤0.05) is significant and positive, showing that direct and indirect family leads to survival of family-owned business in Ibadan, Oyo State, Nigeria. Finally Training and development were significantly and positively related to growth of family-owned business [r (140) = .636**, p<0.01]. Thus, it was found out that training and development has a positive and statistically significant influence on growth of family-owned business. The study concluded that family-owned wealth management and financial planning businesses have a compelling need for a succession plan. It was recommended that Managers and leaders might use the findings of this study to recognize the importance of succession planning and document future succession plans in a more organized approach and by developing a road map to clarify positions.