Succession Planning and Performance of Small and Medium Family Owned Businesses in Kiambu County, Kenya”

Abstract

The “objective of this study was to determine the relationship between ssuccession planning and firm small and medium family owned businesses performance in the County of Kiambu. The study used a descriptive survey research design. The population targeted for this research were the small and medium family businesses in Kikuyu town, Kiambu County in Kenya. The sample size of the study was 98 respondents. The data used was collected from the owners of small and medium family businesses with the use of a semi-structured questionnaire. Frequencies, percentages, means and standard deviations were the descriptive techniques used to analyse the data. Inferential statistics was then used to establish the relationship between succession planning and the performance of small and medium family businesses in Kiambu County. The researcher administered 98 questionnaires to small and medium family owned businesses in Kiambu County and got 85 responses giving response rate of 86.73% which was an adequate representation of the target population.” The study established that small and medium family owned businesses in Kiambu County have implemented succession management. The firms are aware that succession planning is very important and that why many firms can operate even in the absence of the business owner. “The study further concluded that succession management positively and significantly affects the small and medium family owned businesses performance in the County of Kiambu. The study also concluded that small and medium family owned businesses practice human resource management in preparation for succession. The small and medium family owned businesses practice human resource management to a great extent and require accountability is required from every employee in the business with the vision of the business is shared to all employees. The study further concluded that the small and medium family owned businesses performance are has a positively and significantly impacted by human resource management. On the extent to which small and medium family owned businesses practice career development in preparation for succession, the study concluded that small and medium family owned businesses practice career development to a great extent. The successors are inducted properly to organizational culture to a great extent. Further, earmarked successors get opportunities to develop their careers and that education plays a key role in career development and succession to a great extent. The study further concludes that career development positively and strongly correlated with the performance of small and medium family owned businesses. The study recommended that in order to improve the performnace of small and medium family owned businesses, the management of those firms should consinder estbalsihing succession plans that will alow smooth running of the said business. The study was limited its scope to the effcetof succession planning (succession management, human resource management and career development on the small and medium family owned businesses performance.” The findings could be adequately generalised to firms outside te County of Kiambu since the business emvironment might be different. In future, a similar resaerch should be carried out in all the 47 counties for comparison purposes.