The impact of female succession planning in black owned family businesses in South Africa

Abstract

In South Africa, family businesses significantly impact the country’s economy and business landscape; these businesses are unique and have continued to face many dynamic challenges. A huge hurdle relates to that of a successful transition of ownership and power, from the first generation of owners to the second generation. The majority of family businesses fail in the transgenerational success of their companies and this remains a point of concern. In South Africa Black female business owners are still at a disadvantage when compared to their white male counterparts, the challenges that these businesses face are vast and ever changing. Female entrepreneurship has been on a slow increase in South Africa, and these businesses need access to the adequate resources to succeed. The longevity and success of the companies is vital to the growth of the country’s economy and the rise of employment opportunities in the society. This study researches the impact that succession planning has on Black female owned family businesses in South Africa. The quantitative study made use of a cross-sectional research design which focused on succession planning and the dimensions of familiness set out by the resources based view. The data of the study was analysed using IBM SPSS and regression and correlation analysis was run on the data stet. The results of the study showed that the resources that a business obtains significantly affect the succession planning that takes place. The financial social and human resources are seen to have the most significant on succession planning. The study has contributed to the growing literature that focus on Black female entrepreneurship, the impact of the study is found to have societal and educational implications