Succession Planning in Small and Medium Enterprises in the Takoradi Metropolis of Ghana

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The objective of the study was to find out factors affecting succession planning in Small and Medium Enterprises (SMEs) in Takoradi Metropolis and again to suggest ways of enhancing succession planning in Small and Medium Enterprises in Takoradi. Descriptive survey was used for the study. Purposive sampling was used in selecting 125 SMEs for the study. A respondent each was required from the 125 SMEs and so stratified sampling was used to group the respondents into owners and workers. 60% quota was given to owners and 40% to workers through quota sampling. Convenience sampling was then used to sample the required number. Data was gathered through the use of questionnaire and analysed using percentages and frequency tables. The major findings of the study are that lack of trust was one of the factors affecting succession planning in SMEs. This was because many SMEs do not have clear objectives and policies of succession planning for the enterprise. The study found out that succession was not based on merit or succession was based on the relationship with the founder of the business. The study revealed that good management practices and clear objectives of the SMEs in terms of who would take over or assume position when the owner or founder retires or dies could relate to succession planning. The study again identified that many SMes do not involve their family or relatives in the operations of the business. The study recommended that SMEs should train prospective successors for the enterprises. Again there should be succession laws to regulate the smooth transition to new administration. Finally the study recommends that successors for the business should be based on merit to ensure that right and qualified people manage the enterprise.
A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters of Business Administration,