Sustainability of Family-Owned Businesses in the Willowvale Industrial Area of Harare, Zimbabwe

Abstract

The study sought to evaluate the sustainability of family-owned businesses which were situated in Willowvale industrial area of Harare. The study emanated from the fact that family-owned businesses were experiencing high failure rates. The research explored challenges faced by family-owned businesses, investigated the coping strategies which they adopted, evaluated the link between success factors and sustainability and identified forms of government assistance. Mixed research approaches were adopted. The study found that the family-owned businesses faced a myriad of challenges chief among them shortage of capital, adverse economic environment and stiff competition. The companies lacked in appreciating the role of innovation, information technology, efficiency and quality in enhancing sustainability of their businesses.Coping mechanisms involve reorganising their operations, balancing costs, having family support and mixing entrepreneurship with emotion. There was a weak link between corporate governance, succession planning and management practices with sustainability of family-owned businesses in Willowvale. However, there was a strong link between sustainable competitive advantages and sustainability of these organisations.

Cash Flow Management Challenges Faced by Small Family-Owned Businesses in Zimbabwe

“…This state affairs resonate well with the fact that most businesses start as family businesses (Nyamwanza, Mavhiki, & Ganyani, 2018). Nonetheless, the issues surrounding the sustainability and longevity of family businesses in Zimbabwe have been under-researched (Chundu, Njobo, & Kurebwa, 2021).…”

“…This condition supports the idea that family businesses can nurture entrepreneurs who contribute significantly across Zimbabwe's sectors. Hence, it is salient to observe that big companies in Zimbabwe, such as Nyaradzo Funeral Services, Peace Security, Econet Wireless Zimbabwe, and Moonlight Funeral Services, start as family businesses (Chundu et al, 2021). With this in mind, their contribution to the Zimbabwean economy cannot escape the attention of academicians and policymakers.…”

“…It is surprising given the call made by Sandada and Magwandi (2015) concerning the urgent need to extend the understanding of management practices of family-owned businesses. Much scholarly attention has been paid to corporate governance and succession at the expense of financial management practices such as cash flow management planning (Chundu et al, 2021;Dumbu, 2018aDumbu, , 2018bNyamwanza et al, 2018). Given the scarce literature on cash flow management in the family businesses discourse, the research aims to cover this gap by addressing the cashflow management challenges that small family-owned businesses face.…”

Development of an inter-generational business sustainability framework for family-owned passenger bus companies in Zimbabwe.

“…De Falco & Vollero (2015) define sustainability in terms of achieving longevity for the family enterprise through the creation of enlarged trans-generational value based on a combination of three pillars/systems of family success, business growth (longevity, company performance, innovation ability) and quality of local embeddedness in shared community values, social ties. Schillaci et al, (2013) refer to FB sustainability as the ability to ensure the persistence of the family over time, combining the continuity of the family myth with social responsibility and creating a community of values and intentions (Chundu et al, 2021). Sustainability is a compelling strategy to increase business sales, investment and financial assistance, talent, workforce diversity and productivity, company visibility, and goodwill (Chundu et al, 2021).…”

“…Schillaci et al, (2013) refer to FB sustainability as the ability to ensure the persistence of the family over time, combining the continuity of the family myth with social responsibility and creating a community of values and intentions (Chundu et al, 2021). Sustainability is a compelling strategy to increase business sales, investment and financial assistance, talent, workforce diversity and productivity, company visibility, and goodwill (Chundu et al, 2021).…”