UNDERSTANDING THE IMPACT OF SOCIO ECONOMIC FACTORS ON SUCCESSION PLANNINGOF FAMILY BUSINESSES IN BAUCHI STATE, NIGERIA

Abstract

This study investigated the impact of socio economic factors on succession planning of family businesses in Bauchi State, Nigeria. The paper employed the quantitative research design based on a cross sectional research design. The objectives of the study are to examine the effects of socio economic factors and religious beliefs on succession planning of family businesses. The sampling technique used in the study was stratified random sampling with sample size of 144. Structured questionnaires were distributed to 144 managers of the family businesses who are registered with the Ministry of Commerce and Industry, Bauchi State, 141 copies were returned and 135 copies were found valid after data clean up. The hypotheses of the study were tested using inferential statistics (Multiple Regression) based on analysis of moment structure (AMOS). The findings of the research revealed that socio economic factors (gender, age and education level), and religious beliefs have influence on succession planning of family businesses. The study has implications for theory and practice because predecessors who want their businesses to continue after them must plan adequately, putting into consideration the factors that could facilitate or hinder succession to take place.