Retiring from the family business in Kumasi: an exploratory sequential study
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Date
2018-11
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KNUST
Abstract
ABSTRACT
In Ghana, family businesses estimates about 92% of all types businesses and represent 80% of businesses in the informal economy. This is indicative that the country’s economy relies heavily on this sector. However, very little is known about what informs decision-making regarding retirement of aging family business owners in the informal economy of Ghana. This does not ensure the introduction of effective social interventions to address challenges that might be faced by them when they cease to be economically active. Using an exploratory sequential design, 35 family business owners above 50 years were interviewed in Kumasi, the largest hub of retail and wholesale businesses in Ghana. The emerging themes from the in-depth interviews were validated with the responses of a survey of 383 family business owners. Findings of the study suggest that retirement preparation is not a function of age but linked to health, business and family factors. However, a factor analysis concluded on health as the principal component determinant of family business owners’ retirement preparation. Further, based on a chi-square results (𝓍2 = 0.843; p = 0.025), the study concluded there was no gender difference between respondents’ attitudes towards retirement preparation. Also, the Spearman’s Rho (rs) correlation analysis (gamma; - 0.54) showed a negative and weak relationship between increase in age and increase in thoughts about retirement; suggesting that family business owners who were younger had higher chances of preparing for retirement than those who had attained or were older than the state pension age. Further, findings revealed that family business owners anticipate retiring gradually whilst exploring other employment opportunities, housing and relocation plans; implying that retirement is constructed as a transitional process rather than an instantaneous curtailment of work. Therefore, it is recommended that interventions such as health and financial investment plans will have to be considered as this social group will not entirely cease participating in economic activities until they are too frail to work. Further, programme intervention should focus on appropriate preparation across variety of domains such as health, social and psychological so that family business owners will look forward to retiring positively.
Description
A Thesis submitted to the Department of Sociology and Social Work, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of Master of Philosophy in Sociology