SMALL AND MEDIUM ENTERPRISES AND FAMILY OWNED BUSINESS SUCCESSION PLANNING IN BENIN CITY

This study examined Small and Medium Enterprises (SMEs) and family owned business succession planning in Benin City. 70% of SMEs close shop and do not survive to the next generation or scarcely to the third generation at the demise or retirement of the founder due to lack of succession planning in Nigeria. The objective of the study is to determine if family business in Benin City has succession plan. The research design is both exploratory and quantitative. Primary data were elicited through the use of questionnaire. The data were analyzed and presented using statistical technique such as tables and percentages. The result revealed that most family business have succession plan. The perceived succession plan may be in principle but not in practice. Most organizations have no ideas of model of succession, so succession plan could be poorly implemented. Based on the findings, it was recommended that there must be deliberate policies in terms of training and exposure for the mentee initiation, that make it obvious that he/she is next in line.