According to Professor Chris Ogbechie, the dean of Lagos Business School, statistics show that a mere 30% of family-run businesses manage to remain successful after passing on to the next generation. During the Family Business Conference at the Lagos Business School, Ogbechie made this statement in his opening speech. The event took place in Lagos. He believes that family businesses across the globe encounter distinct obstacles, which have motivated the LBS to create an initiative aimed at encouraging discussions about the particular challenges that family-owned companies encounter.
He emphasized the importance of providing specialized support to Nigerian family businesses, pointing out that according to statistics, only around 30% of them manage to survive beyond the initial generation. This underscores the necessity of ensuring their continued success and longevity through targeted assistance. The statistics show how family businesses are able to adapt and persist over time, leaving a lasting impact on the society. Nevertheless, they demonstrate the necessity of ongoing growth and flexibility in order to maintain success within a constantly evolving business environment.
Family enterprises have succumbed to closure due to challenges.
Dr. Okey Nwuke, director of the Family Business Initiative, stated that numerous family enterprises have succumbed to closure due to a wide range of challenges. He mentioned that approximately 24 million family businesses in Nigeria play a significant role in contributing up to $200 billion to the country’s economy. During her keynote speech, Ibukun Awosika, founder of the Chair Centre Group, emphasized the importance of a family business being able to clearly communicate its vision.
More so, the key to ensuring the longevity of family businesses through generations lies in the establishment of strong, enduring structures that allow the business to thrive beyond its original creators. Her suggestion was for family businesses to empower future leaders by giving them the freedom to pursue their own ideas, rather than limiting them with outdated models set by previous generations. In addition to her previous remarks, Awosika emphasized the importance of family businesses upholding core values in order to endure over time. She also warned against overlooking the need for families to assess their unique skills and consider how best to utilize them across different areas of their businesses.
How African family businesses manage the transition of leadership.
Segun Sowande, Head and Partner of Strategy and Markets Sector, KPMG, was in charge of moderating the first panel session. The event showcased a diverse group of speakers representing various family businesses, with individuals spanning different generations. Among them were Rasheed Sarumi, the Group managing director of Saroafrica; Igbuan Okaisabor, the managing director of Construction Kaiser Limited; Samuel Maduka, the chairman of Peace Mass Transit Limited; Uzoma Ezeoke, the executive director of Emzor Pharmaceuticals; and Ikechukwu Eyisi, the executive director of SIMS Nigeria Limited.
Furthermore, the topic of conversation was about how African family businesses manage the transition of leadership from one generation to the next while balancing traditional values with new innovative ideas. Nneka Okekearu, director of the Enterprise Development Centre, moderated the panel session titled ‘A Candid Conversation: Insights on African Family Business,’ which was the second session of the event. LBS, a graduate business school under the ownership of the Pan-Atlantic University Foundation (PAUF), draws its inspiration from St. Josemaria Escrivá, the founder of Opus Dei.
Related Article: Family-owned Businesses Face Obstacles
Situated in Ajah, Lekki, Lagos State, LBS provides a range of academic and executive programmes in Management tailored for professional development. Since its founding in 1991, LBS has partnered with various business schools in Africa and globally to create programs aimed at cultivating ethical and effective leaders for both the African continent and beyond. LBS is affiliated with various esteemed organizations such as the AABS, GBSN, PRME, and AACSB International, which highlight its commitment to excellence in business education.