Family business owners must make deliberate, systematic plan before death — experts

Experts have identified some of the various solutions to solving major problems often faced by family businesses towards succession and sustainability. This was the highlight of the inaugural public lecture in commemoration of the 40th Anniversary of the corporate existence of S. E. Nomuoja & Co. as Chartered Secretaries and Administrators, at NCA House, Alausa, Ikeja , Lagos recently.

 

Mr. Olusoji Majekodunmi , former company secretary, UAC plc and past president of Institute of Chartered Secretaries and Administrators of Nigeria, who was the keynote speaker during the event, in his presentation titled, ‘The Entrepreneurial Succession problems in Nigeria’s family business : a threat to sustainability,’ disclosed that most family businesses have not been able to outlive their founders, due to their failure to make deliberate and systematic plan before their death.

According to him, “most businesses have failed after the original founder due to lack of deliberate and systematic plan in the transfer of the ownership of the business from one family to the next.”

He also identified lack of adequate grooming of successor(s) in the original founder’s business line, through proper vocational or professional education.

 

He noted that succession issues are not limited to the Nigeria’s family businesses alone, but is of universal appeal. Adding that family businesses, which may either, be sole trading or vocational businesses, including professional practices which are of relatively recent origin, constitute an important group of enterprises within the small to medium scale sector.

 

He said “When most business founders become successful in the businesses, out of the fear of their own backgrounds, they often educates their children in exotic disciplines unrelated to their line of business, thereby lending credence to the “qualified but not suitable syndrome, a veritable panacea for succession failure.

“This kind of education fails to inculcate into the would-be successor, the dream, passion, discipline and sometimes the integrity of the founder, which are his/her personal attributes, and which are non-transferable.

 

However, Mrs . Benedicta Sadare, the Managing Partner of S.E.Nomuoja & Co, in her goodwill message called on entrepreneur in the country to establish a clear and meaningful strategic development process for easy succession with a view to sustaining their business.

According to her succession plan is required and should be carried out at the right time. Adding that entrepreneurs in the country must act proactively by crafting a succession plan early enough. She said, “Proper values must also be instilled in their successor. I believe that this knowledge is essential to project the ethos of sustainability of businesses with good corporate governance structure entrenched in any business.

 

Also, Dr. Larry Izamoje, Chairman , Chief Executive Officer of Brilla Fm, who coordinated the discussion session, disclosed that entrepreneurs must be committed to impacting the ethics of family business on their children.

 

Culled from:www.vanguardngr.com