EXPLORING THE DYNAMICS OF FAMILY BUSINESSES: INSIGHTS FROM SOUTH WEST NIGERIA

Abstract

This study explores the dynamics of family businesses in South West Nigeria, with a focus on identifying key factors influencing their growth and sustainability. The objective is to fill an important gap in the existing literature on family business by providing empirical evidence on the challenges and opportunities. The research specifically examines the role of succession planning, governance, trust, commitment, and openness in family business growth. Despite common assumptions and beliefs about family firms, the findings suggest that issues such as trust, commitment, fairness, and openness do not significantly affect family business growth in the studied context. Rather, succession is framed as a strategic renewal process, where the entry of new owners, who may bring in capital, resources, and innovative approaches, is imperative for long-term success. Drawing on entrepreneurship theory, the study distinguishes between necessity and opportunity of entrepreneurs, further extending these concepts to family business succession, where successors may approach the process either proactively or reactively. This study adopts a descriptive survey research design, employing both qualitative and quantitative data analysis through descriptive and inferential statistics. The population of the study includes employees of family businesses in Ogun State, Nigeria, with a purposive sampling technique employed to select two representative firms, Premier Lotto Limited (Ogun Branch) and Obasanjo Farms Ota. The findings of this study are expected to contribute significantly to family business practice, insights that can guide the development of targeted policies and strategies to support the sustainability and growth of family businesses in Nigeria.