An investigation of succession planning and business continuity: A study of family-owned enterprises in Kano State.
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Background of the Study: Succession planning is critical for ensuring the long-term survival and stability of family-owned enterprises (FOEs). These enterprises, often passed down from one generation to the next, face unique challenges related to leadership transitions and continuity (Ali & Yahaya, 2023). In Kano State, Nigeria, family-owned businesses form the backbone of the local economy, providing employment and contributing to economic growth. However, many of these businesses struggle with succession planning, as ownership and management transitions can disrupt continuity and lead to operational inefficiencies (Gashua et al., 2024).
Succession planning in family-owned enterprises is often a complex process, influenced by factors such as family dynamics, trust, and the ability to groom future leaders. Without an effective succession plan, FOEs risk facing leadership crises, organizational conflicts, and ultimately, failure (Oche et al., 2023). Moreover, the lack of clear succession strategies can harm the long-term vision of the business, reducing its capacity to adapt to changing market conditions and effectively manage growth (Ahmed & Tanimu, 2025). In Kano State, many family businesses struggle to maintain continuity beyond the founder’s leadership due to an absence of structured plans for leadership transitions and the growth of the next generation of leaders.
This study aims to investigate the succession planning strategies adopted by family-owned enterprises in Kano State and explore how these strategies impact business continuity. By understanding the approaches to leadership succession, the study will provide insights into how these businesses can secure their future and continue thriving across generations.
Statement of the Problem: Family-owned enterprises in Kano State, like in many other regions, face significant challenges regarding succession planning. Many of these businesses have survived for decades, often due to the direct involvement of the founder or family patriarch in day-to-day operations. However, as the founder approaches retirement or passes on, the absence of a clear succession plan often leads to leadership crises, mismanagement, and the eventual collapse of the business (Mahmud et al., 2023). This problem is exacerbated by a lack of formal governance structures, ambiguous ownership rights, and familial conflicts, all of which hinder the development of a sustainable succession framework (Khalil et al., 2024).
Despite the critical need for succession planning, many family-owned businesses in Kano State continue to operate with informal or nonexistent plans for leadership transitions. The lack of preparedness for generational change compromises the long-term survival of these businesses, which are key contributors to the local economy. Therefore, this study seeks to investigate how succession planning is managed within family-owned enterprises in Kano State and how it affects business continuity and overall growth.
Objectives of the Study:
1. To explore the current succession planning practices in family-owned businesses in Kano State.
2. To assess the impact of succession planning on the continuity and sustainability of family-owned enterprises.
3. To provide recommendations for improving succession planning in family-owned enterprises in Kano State.
Research Questions:
1. What succession planning strategies are currently being used by family-owned businesses in Kano State?
2. How does succession planning affect the continuity and sustainability of family-owned businesses in Kano State?
3. What challenges do family-owned businesses in Kano State face in implementing effective succession planning?
Research Hypotheses:
1. Succession planning does not significantly affect business continuity in family-owned enterprises in Kano State.
2. There is no significant relationship between the quality of succession planning and the sustainability of family-owned businesses in Kano State.
3. Family-owned businesses in Kano State do not face significant challenges in implementing succession planning.
Scope and Limitations of the Study: This study focuses on family-owned businesses in Kano State, Nigeria, specifically examining their succession planning processes. The scope includes businesses in various sectors such as retail, manufacturing, and services. The limitations of the study include potential biases in responses, as participants may be hesitant to discuss family conflicts or operational challenges. Additionally, the availability of data on family succession plans might be limited due to the private nature of these businesses.
Definitions of Terms:
• Succession Planning: The process of identifying and preparing future leaders to take over the leadership of a business, ensuring continuity and growth.
• Business Continuity: The ability of a business to continue its operations over time, particularly during leadership transitions.
• Family-Owned Enterprise (FOE): A business that is owned and managed by members of the same family, often passed down through generations.
