Succession Planning and Business Continuity of Family-Owned Business in Lagos State, Nigeria

Abstract

This study investigates the effects of succession planning on the business continuity of family- owned businesses in Lagos state, Nigeria. The study adopted a cross-sectional survey design and computed a sample size of three hundred and sixty-eight (368) from The Nigerian Association of Small and Medium Enterprises NASME database of registered family businesses of eight-thousand three hundred and ninety- six registered family-owned businesses in Lagos state using the Cochran sample size formula. The senior staff and owners of family-owned businesses in Lagos state were purposively selected to fill out the structured questionnaires of the study. The questionnaires were adapted from previous studies and validated via a pilot study conducted in the Oluyole industrial area of Ibadan southwest, Oyo state, Nigeria. The study adopted SPSS version 25 for the descriptive statistics and Smart PLS version 4.0 for the inferential statistics to analyse the data. The study's findings revealed that succession planning influences 30.2% of business continuity, while the remaining 69.8% can be explained by the other exogenous variables different from business continuity. The study concludes that succession planning positively influences the business continuity of family-owned businesses in Lagos State, Nigeria.