|dc.description.abstract||The objective of this study is to investigate management succession in black–owned
family businesses in South Africa. The study was conducted in two Provinces,
namely Limpopo and the North–West. In the Limpopo province, the study was
conducted in the Vhembe District. The Vhembe district is consists of four
municipalities, i.e. Thulamela, Mutale, Musina and Makhado. In the North–West
province, the study was conducted in the Bojanala District. The Bojanala district has
three municipalities, namely Phokeng, Marikana and Tlhabane.
Family businesses are one of the driving forces behind economic growth in the
developed and developing countries. Their general lack of longevity is a cause for
concern. Their lack of longevity has mostly been attributed to poor succession
management processes which hinder the transfer of the family businesses from one
generation to the next generation. It is because of this concern that the research was
undertaken in order to provide possible suggestions that the family businesses can
adopt and implement in order to ensure a successful transfer of the family business
to the next generation family members.
The research was conducted by means of a literature and empirical study. The
purpose of the literature study was to attain in–dept knowledge of family businesses
and management succession. The literature study formed the basis of understanding
family businesses and the unique challenges facing such businesses.
The literature review has focused on issues such as: the definition of a family
business, unique characteristics of family businesses, the advantages and
disadvantages of family businesses, challenges to the continuity of family
businesses, the definition of succession and succession planning, the importance of
management succession, the nature of the succession process, the selection of a
successor, mentoring and preparing a successor as well as the complete transfer of
management to the successor. The empirical study indicated that successful management succession in family
businesses is hindered by a lack of or poor management succession planning, estate
and retirement planning, the selection of the successor, the prevention and
management of conflict as well as the establishment of family forums which enable
effective communication within the family business.
Therefore, an investigation of management succession in black–owned family
businesses was undertaken due to their lack of longevity as presented in findings
from the empirical study.
Practical recommendations were suggested to support the family and the business to
effectively manage the management succession process in the family businesses.||en_US