Family-owned businesses contribute significantly to economic development, wealth creation, and employment in most emerging economies. Though family businesses are key components of the economies of most countries, only a few of them survive between the founding generation and the next. The failure rate is so high that less than 30% survive the second generation, while under 10% make it to the third generation. The implication is that the survival rate of most African family businesses beyond the founder’s generation is extremely low.
Some of the many large and well-known family businesses that are no longer in business after the exit of their founders include Ekene Dilichukwu Transport, Ugo Foam, Odutola Brothers, Hajj Air, Stationary Stores, Mai Deribe and sons, etc. For example, the founder of MKO business group, the late Nigerian business mogul MKO Abiola, who at one point was believed to be one of the wealthiest men in Africa, successfully built one of Nigeria’s biggest business empires consisting of an airline, a chain of newspapers, extensive real estate, fisheries and retail. After his death in 1998, his businesses crumbled just like several others. None of them exist today.
The most successful family firms however, are those in which there is a good balance between
professional management, responsible business ownership and a healthy family dynamic.
Key Learning Objectives/ Benefits
- Better understanding of the family business model
- Understand the leadership imperatives for family businesses and how to sustain
- Learn to leverage the strengths of family businesses and successfully implement
practices that drive high performance and healthy family relationships
- Learn to manage intra-family dynamics – conflicts, complex family structures and
relationships and their implications to decision making
- Develop concrete action plan for the key governance requirements of family firms –
separating the family from the business and governance of the businesses and
- Understanding the nature, importance and uniqueness of family businesses
- Economic impact
- Special features/strengths
- Dilemmas and challenges
- Managing growth and intra-family dynamics/conflicts
- The Governance and Professionalization challenges of Family enterprises
- Selection and preparation of the next generation of leadership