SUCCESSION EDUCATION AND FAMILY-OWNED BUSINESSES IN SMALL AND MEDIUM-SCALE ENTERPRISES: AN EMPIRICAL REVIEW

Emmanuel E. Okoh¹*, Rowland E. Worlu², Olabode A. Oyewunmi³, and Emmanuel T. Emielu⁴

²Prof., rowland.worlu@covenantuniversity.edu.ng

³Dr., olabode.oyewunmi@covenantuniversity.edu.ng

⁴Mr., eemielu@gmail.com

^1,2,3,4Department of Business Management, College of Management and Social Sciences, Covenant University, Ota, Ogun State, NIGERIA

*Corresponding author

Abstract

Family-owned businesses (FOBs) play significant roles in the growth and development of economies across the globe. Extant literature has noted that clearly defined structures for leadership succession as well as wealth transfer are indispensable building blocks for the sustainable family business. However, a significant challenge facing family-owned enterprises in developing countries, particularly Nigeria, is lack of understanding of succession education as only about 20 percent have a plan for leadership succession and a tiny 3 per cent have a laid down strategy for wealth transfer. This study focuses on the review of extant studies on succession education of family-owned businesses (FOBs) in small and medium-scale enterprises (SMEs) in Nigeria. The research adopted a review of extant literature on succession education. The study found that succession education can form effective resilience to address the challenge of family business succession. Similarly, the paper recommends that the potential successors should be exposed to learning the business early to enable them to acquire adequate on-the-job training for a smooth transfer of ownership and entrepreneurship which is intended to enhance sustainability among Nigerian family-owned businesses.

Keywords: Family-owned Business; SMEs; Succession Education; Succession planning