Familypreneurship in Nigeria: Navigating the Hurdles and Horizons of Building Family Owned Businesses

Abstract

This study investigates the challenges and opportunities associated with establishing family-owned businesses in Nigeria. The research encompasses 50 proprietors of family-owned enterprises in Rivers State, Nigeria. Employing a systematic sampling method, data collection was conducted through questionnaires and interviews. The study’s hypotheses were assessed using Chi-square (x2) test statistics at a 0.05 significance level. Findings indicate that family-owned businesses constitute profitable ventures that significantly contribute to Nigeria’s economic growth and development. The study underscores their substantial positive impact on the country’s GDP. Moreover, it identifies a notably high level of employee performance and productivity within family-owned businesses. Critical challenges faced by family-owned businesses are highlighted, encompassing poor management, insufficient capital, inadequate personnel management, family interference, and inadequate succession planning. Performance and productivity were gauged using output level, goal achievement, employee performance, and satisfaction. The research unveils that while capital availability and strong family ties are pivotal for survival, they aren’t the sole determinants of success. Crucial factors such as purposeful planning, effective management of resources, dedicated employees, and recognition of central leadership, trust, honesty, and commitment are indispensable for success. Given the significant role of family-owned businesses in propelling economic growth in Nigeria, the study provides recommendations. It suggests that governments should incentivize these businesses by offering tax relief, facilitating loan access, and providing essential infrastructure. Simultaneously, family-owned businesses are advised to adhere to ethical business practices, establish robust succession plans, and invest in training and staff development.