Managing the business to last beyond the founders – The building blocks of sustainable family businesses
Family-owned businesses are critical to most countries (developed and developing) and constitute between 80-90% of registered businesses across countries. The importance of family businesses is such that they contribute between 50-60% of GDP, 50-60% of the workforce and tax income of most economies. Despite the significant importance of family businesses, most of them are unable to survive transition (leadership and ownership) between the founding generation to the next. The failure rate is high, resulting in less than 30% of family businesses surviving to the 2nd generation, while under 10% survive to the 3rd generation. Though this phenomenon is not peculiar to Nigeria, it significantly hampers economic development and capital accumulation in the country.
Some of the challenges that account for the high failure rates have been identified to include:
- Nature of the relationship between the families and the businesses
- Decisions on leadership succession
- HR practices – family members vs non-family employees.
The webinar is to ensure that stakeholders have a robust discussion during the webinar, we have put together a set of panellists from different cultures, made up of 1st generation founders and 2nd generation family-member leaders of businesses that have survived after the leadership transition. We hope that attendants to the webinar will pick a few tips from the rich experiences of the panellists that will assist them in taking decisions that would be in the best interest of both their families and the businesses.