Factors affecting the sustainability of family businesses in Ghana after the exit of first generation of founding family members
Factors affecting the sustainability of family businesses in Ghana after the exit of first generation of founding family members
Date
2018-04
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Authors
Muithi, Fiona Muthio
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Abstract
Family businesses, many of which fall within the Small and Medium Enterprises (SMEs), are the
center of growth in developing countries such as Ghana as they contribute significantly to the Gross
Domestic Product (GDP), promote employment opportunities and serve as a means of alleviating
poverty. Despite being the center of growth in developing countries, most family businesses rarely
have a successful transition from one generation to the next. Majority of research done on family
businesses has been carried out on succession planning, corporate governance and characteristics
of the different generations running the business. The aim of this paper is to find out the various
factors affecting the sustainability of family businesses in Ghana and find strategies around them
to ensure long-term sustainability. A qualitative approach was employed in the collection and
analysis of data. Using the Sustainable Family Business (SFB) model grounded in the systems
theory, this study found out that of all the factors that affect sustainability, succession planning
and family dynamics have the most impact on the sustainability of the family business, followed
by founder’s syndrome. Entrepreneurial tradition had little to no impact on the sustainability of
the business. This study hopes to contribute to the current family business discussion by bringing
together the four unique factors that affect family businesses with the hope of finding strategies
that will not only increase sustainability of family businesses but also increase the shelf-life of
SMEs in general.
Description
Thesis submitted to the Department of Business Administration, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administration, April 2018
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Thesis
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Keywords
Succession planning , Ghana , SME , Accra , Sustainable Family Business model , family , sustainability