Succession Planning in Black-Owned Family Businesses: A South African Perspective

Gomba, Mqoteleni; Kele, Tumo

doi:10.5430/ijba.v7n5p9

Cited by 14 publications

(15 citation statements)

References 27 publications

(26 reference statements)

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“…Furthermore, such a process guarantees smooth running, sustainability and good performance of family businesses in the absence of the founder. This is because, as Gomba and Kele (2016) observe, successors selected by business founders have an increased level of commitment to the business, which contributes to better business performance.…”

Section: Resultsmentioning

confidence: 98%

Succession planning and performance of family-owned small and medium enterprises in Arusha City – Tanzania

Kiwia

Bengesi

Ndyetabula

2019

JFBM

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Purpose The purpose of this paper is to examine succession planning and performance of family-owned small and medium enterprises (SMEs). Design/methodology/approach The quantitative research approach and a cross-sectional research design were employed. The probability sampling technique was used to draw 219 respondents from the sampling frame. A structured questionnaire was used for data collection. Descriptive statistics and independent samples t-tests were used for data analysis. Findings It was revealed that most of family-owned SMEs founders in the study area had mechanisms for succession planning for their businesses. Also, there is a difference in business performance when successors are selected and prepared by business founders compared to when they are selected and prepared by other family members. Successors selected and prepared by business founders performed better in business than successors who were selected and prepared by other family members. Research limitations/implications This study employed a quantitative research paradigm methodology, which limits deep discussion with respondents. Future studies could consider using a qualitative research paradigm methodology. Originality/value The paper presents succession planning process experience in family-owned SMEs in the study area, specifically the existence of succession planning in family-owned SMEs. It also shows a difference in business performance between the two investigated groups. This paper will benefit business founders, family business successors and researchers.

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Section: Resultsmentioning

confidence: 98%

Succession planning and performance of family-owned small and medium enterprises in Arusha City – Tanzania

Kiwia

Bengesi

Ndyetabula

2019

JFBM

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“…In South Africa, copreneurs exist within the framework of two fields, namely SMMBs and family business. Family businesses in South Africa account for around 80 percent of businesses thus they play an extremely important role in terms of job creation and poverty alleviation in both the formal and informal sectors (Gomba & Kele, 2016). In fact, the Siamese twins of unemployment and poverty, are a scourge, which small businesses have continually been peddled as solution.…”

Section: Obstacles To Smmbs Successmentioning

confidence: 99%

Obstacles Faced by African Copreneurs in Black Townships of the Western Cape, South Africa

Myeko

Iwu

2019

J. Rev. Global Econ.

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The primary objective of this study is to examine the experiences of copreneurs specifically those who operate in the black townships of the Western Cape. Specifically, this study targets African 1 copreneurs. Copreneurship is the term used when a husband and wife come together to own and manage a business as part of their daily engagement. As copreneurs, they confront specific obstacles. In South Africa, copreneurs exist within the framework of two fields, namely small, medium, micro business and family business. This study adopts a mixed research methodology, involving both quantitative and qualitative techniques. Thus the data collection instruments included a questionnaire and an interview schedule involving 150 subjects. The findings reveal, among other things, that major obstacles include the lack of finance for business expansion, as well as the lack of relevant information about government support, crime and absence of infrastructure. This study provides an opportunity to understand the specific challenges that c face, as well as information about the state of African copreneurship in black townships in the Western Cape. It is hoped that the findings and recommendations will shine a light on the specific challenges, as well as provide the necessary remedial opportunities so that these entrepreneurs are able to meaningfully add value to their respective communities.

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“…There exist various studies about the transfer of management and its management, heir or successor selection, and most sought heir or successor characteristics in related literature such as Cesaroni & Sentuti (2017), Chua et al (1999), Devany (2006), Gomba & Kele (2016), Güller (2010), and Sharma & Rao (2000). An extensive literature review (e.g., Yu et al, 2012;Bau et al, 2013) indicated that the majority of the related studies had used questionnaire data, convenience sampling, small sample sizes, conceptual analyses and descriptions, and qualitative data analyses.…”

Section: Introductionmentioning

confidence: 99%

Quantifying Family Business Owners' Attitudes towards Succession: Delving Deeper by Random Forests

Kılıç¹,

Filizöz²

2020

CEBR

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Family businesses are the lifeblood of the economic growth of the nations. However, a large gap exists about the application of machine-learning algorithms such as Random Forests (RF) to the quantification of patterns, drivers, and interactions in the succession process of family businesses. The primary aim and novelty of this study lie in the quantification of variable importance based on machine-learning algorithms, and the differences among the characteristics of family businesses, family employees, and family business owners (FBOs) for multivariate responses. For this reason, a field study was carried out in family businesses in Sivas and Ardahan provinces. The questionnaire form created by the researchers was used in this study. In this research, RF classification model was applied. RF classification models of 17 response variables were constructed as a function of 32 predictors. Implications for Central European audience: Impacts of characteristics of FBOs, family businesses, and family employees on FBOs' willingness to transfer to successors and preferences about the successor's qualities were modelled. High-dimensional data were collected from 53 family business owners (FBOs) in two cities for a total of 49 variables. As a result, the domain of the FBOs' characteristics was found to have a more profound impact on both FBO's willingness to transfer to a successor and what successor's qualities were most valued than did the domains of the family business and employee characteristics.

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Succession Planning in Black-Owned Family Businesses: A South African Perspective

Cited by 14 publications

References 27 publications

Succession planning and performance of family-owned small and medium enterprises in Arusha City – Tanzania

Succession planning and performance of family-owned small and medium enterprises in Arusha City – Tanzania

Obstacles Faced by African Copreneurs in Black Townships of the Western Cape, South Africa

Quantifying Family Business Owners' Attitudes towards Succession: Delving Deeper by Random Forests

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