Family business and succession in developing economies: the Nigerian perspective

Studies have shown that despite the enormous business activities in Nigeria, family businesses appear fragile and less successive. This incessant discontinuation of family businesses often add to the already high business failure rates in the economy. Therefore, this study is conducted to find out the reasons why family businesses in Nigeria do not thrive beyond the third and fourth generations. Using qualitative and explorative research, case studies were carried out among business owners in Ile-Ife Community, in the South Western Nigeria. Responses were analysed with Atlas.ti to bring out various thematic issues from the data collected. The results suggest that most business owners have succession plans but vary in their implementation approaches. Fundamentally, their succession plans are being affected by their family structures and successor's personal interest. Also, the findings suggest that business owners who have gone beyond the first generation sustained their businesses through innovative strategies.