Succession planning measures of Small and Medium Enterprise (SME) family businesses in Ghana
Although family businesses play significant role in the new global economy than any other type of organisation, yet many of them fail to survive in the next generation due to poor succession planning measures. This study attempts to make contributions to academia by providing a greater insight into succession planning among family businesses in Ghana. Specifically, the study sought to examine the succession planning process of family businesses, identify the factors affecting succession planning in family businesses, as well as the problems encountered by family businesses during succession planning. The study took a descriptive survey format design using both quantitative and qualitative approach. The sample size for the study was 260 family businesses. A purposive sampling technique was employed for the selection of appropriate samples for the study. Responses from the respondents was analysed by descriptive statistics using the Statistical Package for Social Sciences (SPSS) version 20. It was evident from the study that most of the family businesses in Ghana have succession planning put in place. Although successors are said to help family businesses for longevity in the next generation, some portion of the family businesses in the country did not often train them. However, it was revealed that nearly not all of them have a procedure or process to appoint a successor. Only few of them have a proper laid down process to transfer their business to a successor. The study also concludes that succession planning among most family businesses in Ghana is influenced by the personal need to protect the business and its fortune for the next generation without any consideration for the level of risk, skills, competencies, and experiences required of successors, dissatisfaction and lack of motivation of potential successors, and ability of the potential successor and willingness to take over among others.
A thesis submitted to the Department of Managerial Science, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirement for the degree of Master of Business Administration (Strategic Management and Consulting Option), 2015