During the Lagos Business School Family Business Conference held in Lagos, Professor Chris Ogbechie, the Dean of the school, highlighted the challenges faced by family businesses, noting that only 30% of such businesses survive beyond the first generation.
This statistic, backed by research from the Nigerian Stock Exchange, underscores the critical need for tailored support to ensure the longevity and success of family-owned enterprises.
Dr. Okey Nwuke, Director of the Family Business Initiative, emphasized that many family businesses in Nigeria have closed due to a range of issues, even though they collectively contribute significantly to the national economy.
In her keynote address, Ibukun Awosika, founder of the Chair Centre Group, emphasized the importance of clearly articulating a vision for family businesses.
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She stressed that the survival of family businesses across generations depends on creating structures that enable the business to outlive its founders.
Awosika advised that successors should be allowed to pursue their ideas freely, without being constrained by the templates of their predecessors.
Awosika also highlighted the significance of values in ensuring the longevity of family businesses and encouraged families to evaluate individual talents to determine their deployment within the business.
For family businesses involving spouses, she emphasized the importance of one person making sacrifices to achieve a balance between managing the business and family responsibilities.
Additionally, Awosika cautioned against imposing unfulfilled dreams on children, urging families to recognize and support the unique visions and talents of the next generation to ensure sustained growth and success of family enterprises over time.
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