Family Business and Sustainability of Small and Medium Scale Enterprises in Enugu State, Nigeria

Authors

  • Agu Okoro Agu Department of Business Management; Evangel University Akaeze Ebonyi State
  • Okocha Ebere Rejoice Department of Marketing; Evangel University Akaeze Ebonyi State, Nigeria
  • Anichebe Nnaemeka Augustine Department of Business Management, College of Management Sciences, Evangel University, Akaeze Ebonyi State, Nigeria
  • Paschal Chima Anyanwu Department of Business Management; Evangel University Akaeze Ebonyi State

DOI:

https://doi.org/10.17722/ijme.v17i1.1266

Keywords:

Family Business, Sustainability, Small & Medium Scale Enterprises

Abstract

The Study focuses on family business and sustainability of small and medium Scale enterprises  in Enugu  State, Nigeria. Specifically the study aimed to pursue the following objectives: to determine the effect of succession planning on sustainability of small and medium scale enterprise in Enugu State, Nigeria and ascertain the nature of the relationship strategic planning and Sustainability of small and medium scale enterprise in Enugu State, Nigeria . The study has a population size of (28) small and medium scale enterprises in Enugu State. Instruments used for data collection were primary questionnaires and interview. The total number of 28 copies of the questionnaire were distributed while 25 copies were returned & used while 3 copies were not properly filled. Survey research design was adopted for the study. Two hypotheses were tested using Pearson product moment correlation coefficient and simple linear regression tool. The findings indicated that Succession planning significantly affected sustainability of small and medium scale enterprise in Enugu State, Nigeria (r = 0.958; F = 257.230; t = 16.038; p< 0.05). There was a positive relationship between strategic planning and sustainability (r =. 920, P<.05). . The study concluded that family business control about 85% of nation’s wealth. The study recommends that every owner of small and medium scale enterprises should organize a proper succession plan, that will help the next in command to know, all secretes concerning the business, in order to sustain it for future generation

References

Abouzaid ,S (2007). “IFC family business governance handbook", International Finance Corporation, PP 9-49 .

Adeleke, A, Ogundele, O. J. K. & Oyenuga, O. O. (2008).Business policy and strategy. (2ndEd). Lagos: Concept Publications Limited

Anderson, R. & Reeb, D. (2003). Founding family ownership and firm performance: Evidence from the S&P 500. Journal of Finance, 58, 1301-1327

Astrachan, J.H.& Kolenko, T.A. (1994). A neglected factor explaining family business success: Human resource practices. Fam. Bus. Rev.,7, 251–262.

Carlock, R.& Ward, J.(2001). Strategic planning for the family business; Palgrave: New York, NY, USA, 2001.

Danes, S.; Lee, J.; Stafford, K.& Heck, R.(2008). The effects of ethnicity, families and culture on entrepreneurial experience: An extension of sustainable family business theory. Journal. Development. Entreprenuship,13 (1), 2229–2268

Eddleston, K.A.; Kellermanns, F.W.; Floyd, S.W.; Crittenden, V.L.;& Crittenden, W.F.(2013). Planning for growth: Life stage differences in family firms. Entrep. Theory Pract.,37,(4) 1177–1202.

Ezimma, K & Ifeanyi, E (2017). Succession planning and sustainability of selected family owned businesses in Anambra State, Nigeria, European Journal of Business and Management,9 (34)12

Filser M, Krau S, & Märk S(2013). Psychological aspects of succession in family business management, Management Research Review, 36(3): 256-277. DOI: 10.1108/0140917131130640915.

Gersick, K., Davis, J., Hampton, M., & Lansberg, I. (1997). Generation to generation: life cycles of the family business . Boston, Harvard Business School Press

Gulzar, M. & Wang, Z. (2010). Corporate governance and non-listed family owned businesses: Evidence from Pakistan. International Journal of Innovation, Management and Technology, 1(2), 124-129.

Holland M L, Holland P G.(1995) Reconciling management and financial objectives in family business succession and estate planning, The Entrepreneurial Executive, 1(1): 53-58

James, H. (1999). Owner as manager, extended horizons and the family firm. International Journal of the Economics of Business, 6(1), 41-55

Johnson, G.; Scholes, K.; & Wittington, R. (2005). Exploring corporate strategy text and cases, 7th ed.; Pearson education limited: Harlow, UK,

Kokkranikal, J. (1993). Tourism and the environment. Kerala Calling, 13 (10), 27-44 Md. H. R. 1,

Mohammed, O. Fauzia, J & Christopher, D. (2018). Determinants linked to family business sustainability in the UAE: An AHP Approach, Sustainability,10,(23) 246

Nel, P.S., Werner, A., Haasbroek, G.D., Poisat.Sono, T. & Schultz, H.B. (2008). Human resource management. (7thEdition). Oxford University Press.

Nkam, M. Sena,,O. & Ndamsa, D. (2017). Factors affecting the sustainability of family businesses in Cameroon: An empirical study in Northwest and Southwest Regions of Cameroon, Journal of Entrepreneurship: Research & Practice, 19

Owolabi, S & Makinde,O (2012). The effects of strategic planning on corporate performance in university education: A study of babcock university, Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 2, No.4

Poutziouris, P., Steier, L., & Smyrnios, K. (2004). A commentary on family business entrepreneurial developments. International Journal of Entrepreneurial Behaviour & Research, 10(2), 7-11.

Price Waterhouse Coopers (PWC) (2016).Addressing the “Missing middle”: Strategic planning. Available online: https://www.pwc.com/gx/en/services/family-business/family-business- survey-2016/strategic-planning.html (accessed on 9 August 2017)

Ramón S.G &,& Ascensión B. M (2017). Impact of family business on economic development: A study of Spain’s Family-owned Supermarkets, Journal of Business and Management Sciences, Vol. 5, No. 4, 129-138

Tatoglu, E., Kula, V., & Glaister, K. (2008). Succession planning in family-owned businesses: evidence from Turkey. International Small Business Journal, 26, 155–180

Ward J L. (2011). Keeping the family business healthy: How to plan for continuing growth, Profitability, and family leadership, New York, Palgrave MacMillan. 1

Ward, J. (1988).The special role of strategic Planning for family businesses. Family Business. Review.1, 105–11

Yukl, G (2010)..Leadership in organizations; Pearson education; Prentice Hall Inc.: Upper Saddle River, NJ, USA,.

Zahra, S., Hayton, J., & Salvato, C. (2004). Entrepreneurship in family vs. non-family firms: A resource-based analysis of the effect of organizational culture. Entrepreneurship Theory and Practice, 28(4), 363-381

Downloads

Published

19-06-2021

How to Cite

Agu Okoro Agu, Okocha Ebere Rejoice, Anichebe Nnaemeka Augustine, & Paschal Chima Anyanwu. (2021). Family Business and Sustainability of Small and Medium Scale Enterprises in Enugu State, Nigeria. International Journal of Management Excellence (ISSN: 2292-1648), 17(1), 2387–2394. https://doi.org/10.17722/ijme.v17i1.1266