Managing family business in Nigeria: problems and prospects

Abstract

This study examines the problems and prospects of a family business in Nigeria. The responses were 143 proprietors and officials of family businesses in Rivers State, Nigeria. The sampling procedure adopted was the systematic sampling method while data collection was through questionnaire. The proposed hypotheses were tested using Chi-square(x2) test statistics at the level of 0.05 of significance. The fundamental problems of family business identified by this study are: managerial, financial, personnel, marketing, and production. The prospects are employment for family members, wealth creation through hard-work, opportunities for survival allow growth and expansion, and guarantees steady income for family members. We concluded that even though adequate capital and strong family relationships are very important variables for the survival of the business, they do not guarantee success.