Why family businesses must succeed – LBS

The Lagos Business School (LBS) said its support for family businesses through its family business initiative (FBI) is hinged on the need to ensure the success of family businesses in contributing to the growth of the economy. This is just as the school is set to hold its annual International Family Business Conference to promote […]

The Lagos Business School (LBS) said its support for family businesses through its family business initiative (FBI) is hinged on the need to ensure the success of family businesses in contributing to the growth of the economy.

This is just as the school is set to hold its annual International Family Business Conference to promote the sustenance of family businesses in Nigeria beyond the first generation.

The conference set to be held on the 27th of March with the theme, ‘Preparing the next generation for Stewardship: Building a Lasting Legacy for Family Businesses’, will host leaders of family businesses from across Nigeria, including: Co-founder Tengen Family Office, Aigboje Aig-Imoukuede; Founder/CEO, Coscharis motors, Dr Cosmas Maduka; MD/CEO, Coleman Cables, George Onofowokan, among others, to discuss issues as they relate to long-term sustenance of family businesses in Nigeria.

Speaking at the media parley, Chairman, LBS Family Business Advisory Committee, Rasheed Sarumi, described the conference as one of the efforts of LBS towards sustaining family businesses which will promote the employment rate in the country and reduce poverty.

He said, “Lagos Business School is pioneering efforts, through its family business initiative, in sustaining family businesses; because most businesses in Nigeria are family businesses. 

“We believe that when we have successions in those businesses, it will contribute to the growth of the GDP, employment rate and reduction of poverty.”

Director, LBS Family Business Initiative, Dr Okey Nwuke, highlighted some of the challenges of family businesses in Nigeria which include inability to survive beyond the first generation. This he attributed to lack of proper stewardship to foster healthy succession.

He said the theme of the forthcoming conference is about preparing the next generation for stewardship. He stated that stewardship goes far beyond the role of a guardian, rather looking at the business with the long-term vision to ensure the longevity of the business.

 

He said, “Under 30% of family businesses in Nigeria are unable to survive beyond the first generation. Still, we have found out that most of the issues facing family businesses are swept under the carpet.”