IDEAS home Printed from https://ideas.repec.org/a/bjc/journl/v10y2023i9p323-334.html
   My bibliography  Save this article

Familypreneurship in Nigeria: Navigating the Hurdles and Horizons of Building Family Owned Businesses

Author

Listed:
  • Marcus, Belinda Ihuoma

    (Department of Management, University Of Nigeria, Enugu Campus, Enugu State, Nigeria)

  • Ekperi Paul Madukwe

    (Institute for Development Studies, University Of Nigeria, Enugu Campus, Enugu State, Nigeria)

Abstract

This study investigates the challenges and opportunities associated with establishing family-owned businesses in Nigeria. The research encompasses 50 proprietors of family-owned enterprises in Rivers State, Nigeria. Employing a systematic sampling method, data collection was conducted through questionnaires and interviews. The study’s hypotheses were assessed using Chi-square (x2) test statistics at a 0.05 significance level. Findings indicate that family-owned businesses constitute profitable ventures that significantly contribute to Nigeria’s economic growth and development. The study underscores their substantial positive impact on the country’s GDP. Moreover, it identifies a notably high level of employee performance and productivity within family-owned businesses. Critical challenges faced by family-owned businesses are highlighted, encompassing poor management, insufficient capital, inadequate personnel management, family interference, and inadequate succession planning. Performance and productivity were gauged using output level, goal achievement, employee performance, and satisfaction. The research unveils that while capital availability and strong family ties are pivotal for survival, they aren’t the sole determinants of success. Crucial factors such as purposeful planning, effective management of resources, dedicated employees, and recognition of central leadership, trust, honesty, and commitment are indispensable for success. Given the significant role of family-owned businesses in propelling economic growth in Nigeria, the study provides recommendations. It suggests that governments should incentivize these businesses by offering tax relief, facilitating loan access, and providing essential infrastructure. Simultaneously, family-owned businesses are advised to adhere to ethical business practices, establish robust succession plans, and invest in training and staff development.

Suggested Citation

  • Marcus, Belinda Ihuoma & Ekperi Paul Madukwe, 2023. "Familypreneurship in Nigeria: Navigating the Hurdles and Horizons of Building Family Owned Businesses," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(9), pages 323-334, September.
    • Handle: RePEc:bjc:journl:v:10:y:2023:i:9:p:323-334
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijrsi/digital-library/volume-10-issue-9/323-334.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijrsi/articles/familypreneurship-in-nigeria-navigating-the-hurdles-and-horizons-of-building-family-owned-businesses/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Randerson, Kathleen & Bettinelli, Cristina & Fayolle, Alain & Anderson, Alistair, 2015. "Family entrepreneurship as a field of research: Exploring its contours and contents," Journal of Family Business Strategy, Elsevier, vol. 6(3), pages 143-154.
    2. Neil C. Churchill & Kenneth J. Hatten, 1987. "Non-Market-Based Transfers of Wealth and Power: A Research Framework for Family Businesses," Entrepreneurship Theory and Practice, , vol. 11(3), pages 51-64, January.
    3. Ramona K. Z. Heck & Frank Hoy & Panikkos Z. Poutziouris & Lloyd P. Steier, 2008. "Emerging Paths of Family Entrepreneurship Research," Journal of Small Business Management, Taylor & Francis Journals, vol. 46(3), pages 317-330, July.
    4. Neil C. Churchill & Kenneth J. Hatten, 1987. "Non-Market-Based Transfers of Wealth and Power: A Research Framework for Family Businesses," Entrepreneurship Theory and Practice, , vol. 12(2), pages 53-66, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. César Camisón-Zornoza & Beatriz Forés-Julián & Alba Puig-Denia & Sergio Camisón-Haba, 0. "Effects of ownership structure and corporate and family governance on dynamic capabilities in family firms," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-34.
    2. Sheshadri Chatterjee & Ranjan Chaudhuri & Demetris Vrontis & Adnane Maalaoui, 2023. "Internationalization of family business and its performance: examining the moderating role of digitalization and international networking capability," Review of Managerial Science, Springer, vol. 17(7), pages 2443-2470, October.
    3. César Camisón-Zornoza & Beatriz Forés-Julián & Alba Puig-Denia & Sergio Camisón-Haba, 2020. "Effects of ownership structure and corporate and family governance on dynamic capabilities in family firms," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1393-1426, December.
    4. Ayranci, Evren, 2010. "Family involvement in and institutionalization of family businesses: A research," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 3(3), pages 1-22, October.
    5. repec:ipg:wpaper:2014-519 is not listed on IDEAS
    6. Rodrigo Basco & Andrea Calabrò, 2017. "“Whom do I want to be the next CEO?” Desirable successor attributes in family firms," Journal of Business Economics, Springer, vol. 87(4), pages 487-509, May.
    7. Sue Birley, 2002. "Attitudes of Owner-Managers' Children towards Family and Business Issues," Entrepreneurship Theory and Practice, , vol. 26(3), pages 5-19, April.
    8. Andersson, Fredrik W. & Johansson, Dan & Karlsson, Johan & Lodefalk, Magnus & Poldahl, Andreas, 2017. "The Characteristics and Performance of Family Firms: Exploiting information on ownership, governance and kinship using total population data," Working Papers 2017:1, Örebro University, School of Business.
    9. Andrea GANZAROLI & Gianluca FISCATO & Luciano PILOTTI, 2006. "Does business succession enhance firms’ innovation capacity? Results from an exploratory analysis in Italian SMEs," Departmental Working Papers 2006-29, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    10. El Fasiki, Hamza, 2013. "The Family Business in Collectivist Societies: Traits and Implications," MPRA Paper 48857, University Library of Munich, Germany.
    11. Shujun Ding & Zhenyu Wu, 2014. "Family Ownership and Corporate Misconduct in U.S. Small Firms," Journal of Business Ethics, Springer, vol. 123(2), pages 183-195, August.
    12. Pramodita Sharma & Jess Chua, 2013. "Asian family enterprises and family business research," Asia Pacific Journal of Management, Springer, vol. 30(3), pages 641-656, September.
    13. Schlepphorst, Susanne & Moog, Petra, 2014. "Left in the dark: Family successors’ requirement profiles in the family business succession process," Journal of Family Business Strategy, Elsevier, vol. 5(4), pages 358-371.
    14. George C. Rubenson & Anil K. Gupta, 1997. "The Initial Succession: A Contingency Model of Founder Tenure," Entrepreneurship Theory and Practice, , vol. 21(2), pages 21-36, January.
    15. Yangyang Qi & Jiong Wu, 2023. "Performance feedback, succession process and innovative activities of family firms: evidence from China," Asian Business & Management, Palgrave Macmillan, vol. 22(2), pages 765-791, April.
    16. Collin, Sven-Olof Yrjö & Ahlberg, Jenny, 2012. "Blood in the boardroom: Family relationships influencing the functions of the board," Journal of Family Business Strategy, Elsevier, vol. 3(4), pages 207-219.
    17. Veland Ramadani & Léo-Paul Dana & Nora Sadiku-Dushi & Vanessa Ratten & Dianne H. B. Welsh, 2017. "Decision-Making Challenges of Women Entrepreneurship in Family Business Succession Process," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 25(04), pages 411-439, December.
    18. Meleq Hoxhaj & Kamolli Erjus, 2022. "Factors Influencing Tax Evasion of Businesses: The Case of Albania," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 8, ejes_v8_i.
    19. Manuel Vallejo, 2011. "A model to study the organizational culture of the family firm," Small Business Economics, Springer, vol. 36(1), pages 47-64, January.
    20. Huriye SABANCI ÖZER, 2012. "The Role of Family Control on Financial Performance of Family Business in Gebze," International Review of Management and Marketing, Econjournals, vol. 2(2), pages 75-82.
    21. Suveera Gill & Parmjit Kaur, 2015. "Family Involvement in Business and Financial Performance: A Panel Data Analysis," Vikalpa: The Journal for Decision Makers, , vol. 40(4), pages 395-420, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjc:journl:v:10:y:2023:i:9:p:323-334. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Renu Malsaria (email available below). General contact details of provider: https://rsisinternational.org/journals/ijrsi/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.