PUSHING UGANDAN FAMILY BUSINESSES TO THE NEXT GENERATION: A CRITICAL ANALYSIS OF SUCCESSION PLANNING PROCESS IN FAMILY-OWNED BUSINESSES

Abstract

Family Businesses (FBs) face survival threats with experiences of pre and post-succession conflicts, male gender favoritism, nepotism, and poor succession planning whether polygamous FBs, indigenous or non-indigenous owned. FBs’ generational continued survival is tied to the succession question. Addressing succession-related challenges contribute to FB’s survival to the next generation and the continuity of the founder’s legacy. This study looks at critical aspects that lead to smooth succession planning, succession process, and succession model. Thematic content analysis as a research approach to understanding critical concepts of succession planning in Uganda was used. In sum, FBs need to search, prepare, and groom successors of any gender early enough, have written succession plans, written family constitutions and make successor choices based on informed calculated decisions rather than nepotistic, emotional, gender-biased, non-scientific based decisions which in this study is adopted from the contingency model of Family Business Succession (FBS) (Royer et al., 2008) which is based on competence and skills of either an inside-family member or outside-non family member for a successor choice. The study suggests a regulatory body to address peculiar concerns, offer guidance, sensitization, and technical support to the stakeholders of FBs. Big and financially strong FBs are advised to regularly consult FB consultants on peculiar FB concerns in order to overcome FB related challenges that require technical support from FB specialists.