Effect of Choice of Successor on Post Succession Business Survival: Evidence from Small and Medium-Scale Family Enterprises in Osun state, Nigeria

Abstract

The study examined the effect of the choice of successor on post succession business survival of small and medium-scale family enterprises. The study employed survey research design with the use of primary data obtained from small and medium-scale family enterprises in Osun State, Nigeria, through the instrument of questionnaire. A sample of 150 small and medium-scale enterprises drawn from five LGAs using both purposive and random sampling approach was adopted. The study adopted inferential analytic methods of factor analysis and general linear regression. The t-test statistic, at 0.05 level of significance showed t-value of 11.026, at p =0.000. The study therefore concluded that there is significant relationship between entrepreneurial succession decision (choice of successor) and business survival of small and medium-scale family enterprises, and recommended that succession decision should aim at individuals who possess the characteristics that enable business survival.