Evaluation of Succession Planning Practices in Family-Owned Businesses in Aba, Abia State

Succession planning determines the continuity and longevity of family-owned businesses, and evaluating its practice among businesses in Aba, Abia State, South East Nigeria, provides evidence for business sustainability policy. This study evaluated the succession planning practices of 100 family-owned manufacturing and trading businesses in Aba, examining whether formal succession plans existed, how successors were selected, and what leadership transition preparation was undertaken. Data were collected through structured questionnaires and in-depth interviews with 20 business founders and second-generation successors. Succession planning quality was scored on a composite index covering documentation, successor preparation, governance structures, and transition timeline planning. Business continuity outcomes were assessed for 30 businesses that had already undergone at least one leadership transition. Descriptive statistics, frequency analysis, and correlation analysis were employed. Results showed that formal succession plans existed in only 22% of surveyed businesses. Among businesses with formal plans, 87% had successfully navigated leadership transitions compared to only 48% of those without plans. Successor selection was predominantly based on birth order in 58% of family businesses, rather than competency. External advisory support in succession planning was used by only 14% of businesses. The study concludes that succession planning is critically underdeveloped in Aba family-owned businesses, and recommends family business governance workshops through the Aba Chamber of Commerce and the Southeast Enterprise Development Council to improve business continuity outcomes.

Keywords: succession planning, family-owned businesses, business continuity, Aba, Abia State