Exploring strategic and succession planning in SMME family businesses in selected areas in South Africa

Abstract

Research on family businesses remains limited compared to fields such as strategic management, human resources, and corporate development (Rovelli et al., 2021:1). However, scholarly interest in family business research has surged, with academic journals increasingly focusing on family enterprise topics (Sharma, 2004:2). Most studies have examined issues such as conflict, succession, performance and governance (Pounder, 2015:116). Yet, a disconnect appears between family business practices and entrepreneurial norms (Aldrich & Cliff, 2003:74). This study explores family business characteristics, specifically management, ownership, strategic planning and succession planning, to investigate how family businesses differ from entrepreneurial norms. Family businesses are vital in global and local economies, contributing between 70% and 90% of global GDP and employing a substantial workforce (Arzubiaga et al., 2021:351). Despite this, continuity is a significant challenge; only a tiny fraction of family businesses endure beyond the second generation, underscoring the need for robust strategic and succession planning (Baron & Lachenauer, 2021). Existing research shows varied approaches to defining family business, but common principles include significant ownership and managerial influence by family members (Chrisman et al., 2012:3). This study examines strategic and succession planning in South African family-owned SMMEs, offering a review of the literature and focusing on motivations for the research. Through a qualitative approach, it seeks insights into how strategic planning can enhance effective succession planning in family enterprises. By studying the South African context, the research contributes to understanding the influence of strategic planning on the sustainability of family businesses.