Family Business Succession: Founders from Disadvantaged Communities in South Africa

2011 ◽  
Vol 25 (4) ◽  
pp. 277-287
Author(s):  
Eslyn B.H. Isaacs ◽  
Christian Friedrich
Keyword(s):  
South Africa ◽  
South African ◽  
Family Business ◽  
Developed Countries ◽  
Family Businesses ◽  
Disadvantaged Communities ◽  
Succession Plan ◽  
Business Failures ◽  
Business Succession ◽  
Stability And Resilience

It is estimated that 50–70% of all South African businesses are family-owned and that these businesses form the backbone of the South African economy, their qualities providing stability and resilience in the changing society of the nation. Succession is one of the biggest challenges for family business owners. Research shows that only 33% of all family businesses progress from the first to the second generation and only 16% progress to the third generation. This is because in many small and medium-sized family businesses there is no formal succession plan and no appropriate governance structures are in place. Matters may also be complicated by destructive conflicts, with more than one family member believing that he or she is best equipped to take over as leader. In most developed countries family business research is receiving the same attention as, for example, entrepreneurship, but in South Africa neither topic has yet come of age. Of the 23 registered universities and technical universities in South Africa, only one offers a full semester-based module on family business, while four of the other institutions offer around two credit modules, of which succession is a small part. It is clear from the investigation reported here that unless the topic of succession receives more attention unclear succession plans, incompetence and/or lack of preparedness of successors and family rivalries will continue to result in unsuccessful successions and business failures.

scholarly journals Family Business Succession in Different National Contexts: A Fuzzy-Set QCA Approach

2019 ◽  
Vol 11 (22) ◽  
pp. 6309 ◽  
Author(s):  
José António Porfírio ◽  
Tiago Carrilho ◽  
Joseph Hassid ◽  
Ricardo Rodrigues
Keyword(s):  
Family Business ◽  
Fuzzy Set ◽  
Qualitative Comparative Analysis ◽  
Family Businesses ◽  
Expectation States ◽  
Succession Plan ◽  
Limited Applicability ◽  
Expectation States Theory ◽  
Business Succession ◽  
Family Business Succession

Family business succession is a key topic that has attracted considerable attention from researchers, especially in the last decade. Most research, however, is based on case studies with limited applicability and fails to present comparisons across international contexts that highlight differences in succession processes. We apply expectation states theory to analyze a sample of 128 observations in two Southern European countries, Portugal and Greece. We study configurations of successors’ characteristics, family business characteristics, the existence (or absence) of a succession plan, and successors’ motivation to succeed. Our aim is to reveal how these issues affect successors’ perceptions of preparation for succession using fuzzy-set qualitative comparative analysis (fsQCA). Family businesses are a dominant organizational form all over the world, and succession issues are critical for the sustainability of family businesses. Our findings suggest that different configurations of conditions influence successors’ perceptions of preparation for family business succession. Moreover, we verify the influence of cultural differences on these processes. This research helps fill a gap in the literature, showing the role of a set of characteristics in successors’ perceptions of preparation for family business succession. Our conclusions provide insight into the types of policies that can promote successful family business succession.

scholarly journals The impact of culture-related factors on good governance in Greek family businesses in South Africa

2011 ◽  
Vol 42 (2) ◽  
pp. 1-14 ◽  
Author(s):  
C. Adendorff ◽  
C. Boshoff
Keyword(s):  
South Africa ◽  
South African ◽  
Family Business ◽  
Structural Equation ◽  
Good Governance ◽  
Primary Objective ◽  
Family Businesses ◽  
Related Factors ◽  
Business Context ◽  
The Impact

The size of the family business component of the South African economy suggests that it is the predominant way of doing business in South Africa. A large proportion of these family businesses are Greek-owned. More importantly it is estimated that approximately 95% of all Greek businesses in South Africa can be classified as family businesses. The sustainability of Greek family businesses requires that they maintain good governance practices that are both economically and environmentally acceptable to all stakeholders. It also requires that the next generation of Greek entrepreneurs effectively balance good governance of their businesses with their family commitments.The primary objective of this study was to identify and explore the internal, culturally-related factors that influence good governance to ensure the survival, growth and sustainability of Greek family businesses in South Africa. A theoretical model of good governance factors was proposed and tested using Structural Equation Modelling.The study found that perceived good governance in a South African Greek family business context needs to be managed in terms of three factors, namely risk control, the internal regulatory environment and the protection of the stakeholders' interest. The study found that needs alignment, cultural needs alignment, vision and ethnic entrepreneurial growth all impact directly or indirectly on perceived good governance in South African Greek family businesses.

Region of Birth and Child Mortality among Black Migrants to South Africa: Is there a foreign-born advantage?

2016 ◽  
Vol 13 (3) ◽  
pp. 359-376 ◽  
Author(s):  
Tiffany L Green ◽  
Amos C Peters
Keyword(s):  
South Africa ◽  
South African ◽  
Child Mortality ◽  
Southern Africa ◽  
Strong Relationship ◽  
Developed Countries ◽  
Black Immigrants ◽  
Foreign Born ◽  
Region Of Origin ◽  
Child Deaths

Much of the existing evidence for the healthy immigrant advantage comes from developed countries. We investigate whether an immigrant health advantage exists in South Africa, an important emerging economy.  Using the 2001 South African Census, this study examines differences in child mortality between native-born South African and immigrant blacks.  We find that accounting for region of origin is critical: immigrants from southern Africa are more likely to experience higher lifetime child mortality compared to the native-born population.  Further, immigrants from outside of southern Africa are less likely than both groups to experience child deaths.  Finally, in contrast to patterns observed in developed countries, we detect a strong relationship between schooling and child mortality among black immigrants.

scholarly journals Adherence barriers and facilitators for cervical screening amongst currently disadvantaged women in the greater Cape Town region of South Africa

2013 ◽  
Vol 5 (1) ◽  
Author(s):  
Chantelle De Abreu ◽  
Hannah Horsfall ◽  
Despina Learmonth
Keyword(s):  
South Africa ◽  
South African ◽  
Symptom Relief ◽  
Cervical Screening ◽  
Developed Countries ◽  
Physical Symptoms ◽  
African Women ◽  
Structural Barriers ◽  
Refugee Status ◽  
Disadvantaged Women

Background: In South Africa cervical cancer is the second most commonly occurring cancer amongst women, and black African women have the highest risk of developing this disease. Unfortunately, the majority of South African women do not adhere to recommended regular cervical screening.Objectives: The purpose of this research was to explore the perceptions, experiences and knowledge regarding cervical screening of disadvantaged women in two informal settlements in South African urban areas.Method: The Health Belief Model (HBM) provided a theoretical framework for this study. Four focus groups (n = 21) were conducted, using questions derived from the HBM, and thematic analysis was used to analyse the data. The ages of the women who participated ranged from 21 to 53 years.Results: The analysis revealed lack of knowledge about screening as a key structural barrier to treatment. Other structural barriers were: time, age at which free screening is available, and health education. The psychosocial barriers that were identified included: fear of the screening procedure and of the stigmatisation in attending screening. The presence of physical symptoms, the perception that screening provides symptom relief, HIV status, and the desire to know one’s physical health status were identified as facilitators of cervical screening adherence.Conclusion: This knowledge has the potential to inform healthcare policy and services in South Africa. As globalisation persists and individuals continue to immigrate or seek refugee status in foreign countries, increased understanding and knowledge is required for successful acculturation and integration. Developed countries may therefore also benefit from research findings in developing countries.

Successful family business succession: Utilizing peer groups for critical leadership skills development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jenell Lynn-Senter Wittmer ◽  
Clinton Oliver Longenecker ◽  
Angie Jones
Keyword(s):  
Leadership Development ◽  
Family Business ◽  
Succession Planning ◽  
Leadership Skills ◽  
Peer Groups ◽  
Family Businesses ◽  
Business Leaders ◽  
Content Type ◽  
Critical Leadership ◽  
Business Succession

Purpose The current study explores the necessary leadership skills required for leadership succession in family businesses as well as best development activities for each skill. The current study provides suggestions for best practices in developing and utilizing peer groups as a leadership development method. Design/methodology/approach A needs assessment was conducted by surveying 150 family-business leaders. Leaders were asked, “What are your most pressing leadership development needs for your organization as you move toward succession? A follow-up question was then asked: “For each of these skills, what method would best help develop this skill for family business leaders?” The responses were content analyzed, placed into themes, and rank ordered. Findings High agreement amongst business leaders was found as eight leadership skills were cited by high percentages of family-business leaders. Leaders overwhelmingly reported peer developmental activities as being the best method for developing these skills. Originality/value Succession planning in family-businesses is critical as many family business fail to make it past the first or second generation. However, little research explores what specific leadership skills are necessary for optimal succession. As well, many leaders in public organizations seek individual methods of development, such as executive coaching, whereas family business leaders seek group activities to learn with/through their peers.

Cultural values and their implications to family business succession

2019 ◽  
Vol 10 (4) ◽  
pp. 281-292 ◽  
Author(s):  
Grisna Anggadwita ◽  
Werda Bagus Profityo ◽  
Dini Turipanam Alamanda ◽  
Anggraeni Permatasari
Keyword(s):  
Cultural Values ◽  
Family Business ◽  
Family Businesses ◽  
Chinese Family ◽  
Content Type ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Family Business Succession ◽  
Practical Implications

Purpose The family business is one of the business entities that contribute to the economy of a country. Succession in the family business occupies a strategic position, especially in maintaining the company’s sustainability. The Chinese family business has unique characteristics in maintaining and growing its business with the cultural values that underlie how their business. The purpose of this paper is to discuss the cultural values of Chinese ethnic and their implications in the succession process in small family businesses in Bandung, Indonesia. Design/methodology/approach This research uses a qualitative method with the in-depth interview method as a data collection technique. The sampling technique uses purposive sampling, while to test the validity of research data using a triangulation technique. A total of four small Chinese-owned family businesses participated as informants in this study. The study will identify the stage of succession process in the Chinese family business. Findings There are several stages identified in the succession planning of small Chinese-owned family business in Bandung which include succession antecedents, succession activities and desired outcomes. The results showed that small Chinese-owned family business in Bandung has not applied the rules and procedures in the succession process. Most of the Chinese family business in this research still holds Confucianism culture; they prioritize boys as business successors, who have a greater responsibility rather than successor with other gender. Practical implications Several implications are discussed. One of them is the Chinese family business holding cultural values in the process of family business succession. Originality/value This research is expected to provide theoretical and practical implications for academics and family companies with similar cases.

Succession in the Family Business: Challenges for Successors from an Entrepreneurial Perspective

2014 ◽  
Vol 15 (4) ◽  
pp. 279-284 ◽  
Author(s):  
Daniela Weismeier-Sammer ◽  
Isabella R. Hatak
Keyword(s):  
Family Business ◽  
Family Businesses ◽  
Teaching Case ◽  
The Family ◽  
Succession Process ◽  
Business Succession ◽  
Business Challenges ◽  
Family Business Succession

Kronmann Wholesale and Retail is an outstanding family business with more than 300 years of history. This teaching case tells the story of two cousins who follow their fathers into a business full of tradition. The case gives students the opportunity to gain insights into the complex succession process of family businesses, as well as the challenges with which successors are confronted in the course of family business succession.

scholarly journals Business Succession in Indian Family Businesses in South Africa

2021 ◽  
Vol 13 (3(J)) ◽  
pp. 73-80
Author(s):  
Yaaser Mahomed ◽  
Vuyokazi Mtembu
Keyword(s):  
South Africa ◽  
Quantitative Research ◽  
Online Survey ◽  
Family Businesses ◽  
Business Continuity ◽  
Research Approach ◽  
Objective Criterion ◽  
Indian Family ◽  
The Right ◽  
Business Succession

Family businesses play a pivotal role economically and socially in most countries. The study aimed to identify and understand the experiences of Indian family businesses in South Africa with regard to business succession. A quantitative research approach was used with data collected through Google forms online survey. Data was collected from sixty (60) business people from Indian-owned family businesses in South Africa. The study interrogated the following factors which have an influence on family business succession: business ownership influence in succession, business readiness for the exit of owner and succession, the role of the owner after exit from business and selection criteria of the right successor. Findings revealed that the majority of families (86.27%) said it is important to have a hundred percent or full ownership of the business and that a successor should be selected within the family from their bloodline. Findings also revealed that the majority of businesses (86.27%) were not fully ready for the exit of the owner or current leader of the business and that on the exit of the owner; a majority (90.2%) of businesses will prefer to have the owner playing an active advisory role in the business. It is recommended that family-owned businesses should plan for succession on time and draft a well-planned strategic succession plan for the business. It is also recommended that an objective criterion be used in selecting a successor who will take the business forward. Healthy business continuity should be the ultimate goal of succession and families should not sacrifice successful business continuity because of their, internal differences and conflict, culture, blood relations, gender or religion.

Game Theory and Family Business Succession

2012 ◽  
Vol 26 (1) ◽  
pp. 51-67 ◽  
Author(s):  
Tim Blumentritt ◽  
Timothy Mathews ◽  
Gaia Marchisio
Keyword(s):  
Game Theory ◽  
Family Business ◽  
Family Businesses ◽  
Business Succession ◽  
Succession Events ◽  
Family Business Succession ◽  
Primary Contribution

One of the most significant challenges to enduring family businesses is the process of passing the leadership of a firm from one generation to another. This article introduces game theory as a model for examining succession as a set of rational but interdependent choices made by individuals about a firm’s leadership. Its primary contribution is demonstrating the application of game theory to understanding the decisions and outcomes of succession events.

scholarly journals Ubuntu and Social Capital factors in Family Businesses

2008 ◽  
Vol 1 (1) ◽  
pp. 66
Author(s):  
William Venter
Keyword(s):  
South Africa ◽  
Social Capital ◽  
Social Responsibility ◽  
Family Business ◽  
Large Family ◽  
Family Businesses ◽  
Key Words And Phrases ◽  
Structured Interviews ◽  
The Social ◽  
Family Business Groups

<p>The current study is an investigation of social capital, and more particularly the support of the concept of ubuntu in large family businesses in South Africa. Insights into the social responsibility activities of some of the largest family businesses in South Africa, obtained through semi-structured interviews, clearly indicate the important role which the social responsibility ubuntu activities of these businesses play in caring for the community. As South Africa has a mainly “individualistic economic community”, it is interesting to observe how the collectivistic notion of ubuntu is practised in the social responsibility activities of family business groups.</p><p><strong>Key words and phrases:</strong> ubuntu, social responsibility, social capital, family business, conditional matrix</p>

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