Exploring the entry process in South African family businesses in Gauteng province

Abstract

Family businesses are one of the most important types of businesses in the world. They account for the majority of gross domestic product in many countries and South Africa is no exception. They are also responsible for creating employment for more than half of the world's workforce. Most academic research is done from the founders' point of view and there is very limited academic research available from the successor or next generations' viewpoint. The study's primary objective is to explore the foremost reasons used and methods of how next-generation family members enter small and medium family businesses in Gauteng, South Africa. Secondary objectives were developed to assist in achieving the primary objective. The study consists of four chapters, where Chapter 1 includes the nature and scope of the study. This chapter also accommodates a detailed section of the research methodology that was followed in the dissertation. Chapter 2 follows with a literature review on family businesses. The literature review starts very broad around the subject of family businesses and culminates in a detailed section about the entry process of next-generation successors in family businesses. A qualitative research method was used throughout the empirical study and a range of themes that emerged from the data obtained was discussed in Chapter 3. Semi-structured interviews were used in collecting the data from seven participants. The participants are second and third generation successors of small and medium sized family businesses in Gauteng province. Chapter 4 concludes with practical recommendations made, which can be used by founders, successors and all parties involved in family businesses. These recommendations give them some guidance and advice, when operating in the family business environment.