SUCCESSION PLANNING AMONG SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN NIGERIA

ABSTRACT

This study examines the level of succession planning among Small and Medium-sized Enterprises (SMEs) in Nigeria, with a focus on Benin City, Edo State. The research sought to determine the extent of succession planning among SMEs, identify possible issues hindering the formulation and implementation of succession plans, and investigate the impact of succession planning on employee turnover and performance. Using a sample of 100 respondents and descriptive statistics, the study found that while a significant proportion of SMEs in Benin City have a formal succession plan in place, only a small percentage have a written plan. Additionally, lack of awareness and communication of the plan to employees, absence of a designated successor, and high employee turnover were identified as issues hindering effective succession planning. The study concludes that succession planning is crucial to the long-term growth and sustainability of SMEs and recommends that SMEs should develop a formal succession plan, designate a successor, communicate the plan to employees, seek professional advice, and build capacity through training programs. The government and affiliated agencies should also provide incentives, encourage collaboration, and create awareness campaigns. These recommendations, if implemented, can help to ensure continuity of SME operations and contribute to their growth and sustainability