You have no items in your shopping cart.
ABSTRACT
This research examines “Succession Planning in Small Scale Business” (A study of Small Scale Businesses in Benin City, Edo State). The objective of the study was to analyze the nature of succession planning and inter-generational transition in family business and the difficulties that militate against successful transition and to suggest ways by which successful inter-generational transition can be accomplished. Structured questionnaires were used to collect data from 60 small and medium scale enterprises in Benin City. Out of the 60 questionnaires distributed, only 50 were returned to the researcher. Succession planning was shown to be important as it aids SMEs in getting ideas that will keep the business running for many years and also aids in continuation of management and running of the business after the owner is no more available.
It was found out that poor accounting record-keeping habit of the proprietors and shortage of man power are the main difficulties that militate against a successful transition in small scale businesses. It was also found out that there is no significant relationship between firm’s competitive advantage and succession planning in SMEs. It was also found out that innovation does not stop management owners of SMEs to carry out succession planning in their business. The study also showed that there is no significant relationship between managerial training of family members and succession planning in SMEs. The study revealed that training is usually given to potential managers to take up key position. It is therefore recommended that succession planning should be properly planned so that internal employees or successors can properly play their leadership role. SMEs should identify individuals to fill middle management and fringe roles so as to keep up the pace of the business. SMEs should only appoint developed employees so that the organization will not suffer if a key leader leaves the organization.
