Pass The Baton
A business research expert told me that the average lifespan of a family-owned business is 24 years, and 60 percent of family-owned businesses do not have a clear succession plan. That got me thinking. As a Nigerian, I am well aware that several indigenous businesses in Nigeria are family business. Most of the successful Nigerian Entrepreneurs that are making waves in the economy built up their businesses as family-owned businesses. Just a minute, what really is a family business?
What is a family business?
For the purpose of this discussion, I will define a family business as a corporation that is majorly owned by the members of a single family. In other words, a family business is a business in which members of a family have significant ownership interest and significant commitments toward the business’ overall well-being. They hold the controlling shares and dictate what happens. Naija brothers and sisters will quickly understand this. NaijaEcash & Sons Company sure sounds familiar (even though it has not been documented with Corporate Affairs Commission). (more…)