Succession Planning in Family Businesses: A Study of Small Enterprises in Onitsha, Anambra State

This study examines succession planning practices in family-owned small businesses in Onitsha, Anambra State, South East Nigeria, investigating how business founders plan for leadership and ownership transition and the factors associated with more or less structured succession arrangements. Family businesses represent the dominant enterprise form in Nigeria and their intergenerational continuity is critical for employment, wealth preservation, and economic stability, yet the research on succession planning in Nigerian family SMEs, particularly among the Igbo trading families of Onitsha for whom commercial enterprise is a deep cultural institution, remains underdeveloped. The study employs a descriptive survey design, administering a succession planning assessment questionnaire to 150 founders and second-generation managers of family businesses in Onitsha Main Market and the Onitsha Industrial Area. Data were analysed using descriptive statistics, chi-square tests, and regression analysis. Findings reveal that fewer than 25 percent of sampled businesses have any documented succession plan, with the majority relying on informal family discussions or simply assuming that succession will be managed when the time arises. Businesses in their second generation or older show significantly higher planning formalisation than first-generation enterprises. Education level of the founder, business size, and prior experience of succession-related disputes within the family are the strongest predictors of planning formality. The study argues that Onitsha's strong business culture creates an enabling environment for succession planning adoption if appropriate advisory support is made available. Keywords: succession planning, family business, Onitsha, SME, intergenerational transfer.