Succession Planning In Polygamous Family Businesses: A Case of a Family Business in Zimbabwe
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 8
Abstract
Most businesses in Zimbabwe are started as family businesses and thrive under the guidance of the founding member. However in cases when these businesses are expanding, the owners marry other wives who are made responsible for some business units like shops in rural areas.After the death of the founding member, a successor has to be appointed butthis appointment leads to family disputes and a gradual decline in the size and overall performance of the business.Generally, succession planning in family businesses is problematic in Zimbabwe. Succession challenges are more acute in polygamous families where businessgrowth is linked to a large number of wives and children. This study showed that succession planning in polygamous families tended to be haphazard. The first step was to have each wife responsible for a business unit(s) but answerable to the husband with very limited decision making responsibility. On the death of the founder, an heir is appointed and disputes arise leading to some family members exiting business altogether and renting out the premises as sources of income for their upkeep. Successionplanning in polygamous family businesses is necessary to ensure continuity after the death of the founder member. The creation of private companies rather than sole traders, where family members can be issued with share which can be disposed of without affecting business structure should be considered.
Authors and Affiliations
Tonderai Nyamwanza, Severino Mavhiki, Rumbidzai Ganyani
Keywords
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- EP ID EP412373
- DOI 10.9790/487X-2008053239.
- Views 53
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