Ownership Composition and the Management of Family-Owned Businesses in the South-East, Nigeria

Abstract

This study examined ownership composition and the management of family-owned businesses in South-East, Nigeria. Descriptive survey method based on primary and secondary sources of data collection was adopted. Data was obtained from primary and secondary sources. Primary data was gathered through questionnaire while the secondary data was gathered from a review of several research publications, annual reports, articles, textbooks, unpublished thesis, journals and internet sources related family businesses. The study population consisted of 43,868 family-owned businesses. The sample size is 554 determined using Cochran (1963) statistical formula. Analyses were carried out using simple descriptive statistics organized and presented in tables, frequency and simple percentages. At the inferential level of statistical analyses, the hypothesis was subjected to double-test using Pearson Product Moment Correlation Coefficient and Simple Linear Regression. To establish whether an outcome is statistically significant, the researcher set up a 5% significance level while a 95% confidence level was applied and tested at 5% (p-value ≤ 0.05) alpha level. All analyses were carried out in SPSS 20.0. The study found that the nature of ownership composition on the management in family-owned businesses has a significant relationship with a coefficient of 0.957 which is statistically significant with t = 4.723. The study concludes that the nature of ownership composition significantly affects the management of family-owned businesses in the South-East, Nigeria. The study recommends a separation of ownership and management so that experienced and professionals can be injected to manage the businesses to success.