Effect of Succession Planning on Profit Maximization of Family Owned Businesses in Onitsha Metropolis, Anambra State

Abstract

The study was designed to find out the effect of succession planning on the
profit maximization of family owned businesses in Onitsha metropolis, Anambra state. Data
were sourced through primary and secondary sources. The variables were on mentoring,
coaching and succession planning management as independent variable, while performance as
dependent variable. Questionnaire was used to collect data from owners of the selected firms.
The population of this study was 196 small and medium scale enterprises. The research adopted
purposive sampling method. Analysis of Variance (ANOVA) was employed for the test of
hypotheses. Specifically, findings shows that Coaching and succession management has
significant effect on performance of family businessess in Onitsha metropolis; Mentoring has
no significant effect on performance of family businessess in Onitsha metropolis. It was
recommended that the coach should therefore be very careful not to spend too much of the
session(s) talking and leading the discussion; They should be consciously aware of slowing
their thoughts and listening to the coachee to help reflect back to the individual their situation
and possible solutions. The admission of new partners into entrepreneurial firms should be
objectively done taking cognizance of succession implications.