Intergenerational Survival of Family Businesses: Factors Affecting the Succession Success of Family Owned Businesses in Malawi

Abstract

Family owned businesses make an important contribution to the social and economic development of communities and countries. The proportion of Malawians in formal employment is very small thus compelling a large portion of Malawians to set-up family businesses. The study aimed to investigate and analyse the factors that contribute to the low survival and success rate of Malawian family owned businesses after the exit of the businesses’ founder. The study used a case study format by studying fourteen family owned businesses that had gone through an intra-family succession in the past eight years- seven of the businesses had successful successions whilst the other seven had failed successions. Interviews and questionnaire survey were utilized to gather data. From the findings of the research the study discusses the key factors influencing the failure of family business succession. The study makes recommendations to help improve the continuity and survival of family owned businesses in Malawi.

Keywords: Family businesses; management succession; general management; business continuity; Malawi