The family enterprise is one of the oldest and most popular forms of business across the world, yet Ninety percent of family businesses do not make it to the third generation. As shown on CNN The 100 club program, that showcases successful transgenerational businesses. Only businesses owned by non-Nigerian families that have established their presence here in Nigeria have been able to successfully outlive 3 generations; while the wholly Nigerian owned businesses have fallen or become a shadow of their old selves
The question becomes, why are Nigerian family-owned businesses not transcending? The answer might lie in this inc.com report, main reasons seem to be that families often poorly prepare their next generation for responsibility, lose their ability to innovate and develop their businesses, or even mismanagement of the hiring process
Oftentimes, these businesses find themselves hiring relatives instead of hiring the right talent that fits the role. Remember, running a successful family business requires that you treat the business like a business.
Proper succession planning and management are key to having transgenerational success.