FAMILY BUSINESS SUCCESSION PLANNING IN THE GAMBIA TEXTILE MARKET

Abstract

Purpose- This study aims to analyze family businesses in The Gambia Textile sector and their succession plans. Specifically, this paper seeks to find answers to these questions: ‘Why the number of family businesses passing to the next generation is limited?” and “What can be done to increase family business succession in The Gambia Textile Market?”. Methodology- The qualitative research method was used in this study to interact with people who own family businesses and understand how they transfer the company from founder to successors. Semi-structured interviews were conducted with ten (10) family business owners in the urban area, mainly in Serekunda (Kanifing Municipal Council) and Banjul (the capital city of The Gambia). Findings- The findings revealed that only four passed to the second generation out of ten firms, and none of them had a written succession plan. The successors were identified based on experience, skills, abilities, responsibilities, customer relations, and interest in the family business. All successors were satisfied with their succession experience except one. Also, they noted that family members play an essential role in the family business. Additionally, six firms mentioned they do not have any succession plans for their family businesses. Conclusion- Although most Gambia businesses are family businesses, they do not consider succession plans a necessary action. Due to the lack of family business succession planning, the number of family businesses passed to the next generation is limited.

Keywords

• Family business
• succession planning
• textile industry

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