Causes of Failure Among Family Owned Businesses

Marcellinus Chukwuka Ihionu; Iyke Ofoedu Maureen; Alexander Chinaza Aneke

doi:doi:10.11648/j.ijefm.20241205.15

Research Article |

| Peer-Reviewed

Causes of Failure Among Family Owned Businesses

Marcellinus Chukwuka Ihionu, Iyke Ofoedu Maureen^*, Alexander Chinaza Aneke

Published in International Journal of Economics, Finance and Management Sciences (Volume 12, Issue 5)

Received: 13 June 2024 Accepted: 28 June 2024 Published: 26 September 2024

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

The study investigated the causes of failure among family owned businesses in South-East, Nigeria. Specific objectives were to; evaluate major family business enterprises that have failed in South-eastern states, Nigeria; investigate the causes of failure of these family owned business enterprisesidentified in South-eastern states in Nigeria; explore strategies that will help prevent such failures in other family owned business enterprises in Nigeria. The study adopted a qualitative approach in analyzing the causes. Historical analysis of ten indigenous family owned business situated in South-eastern, Nigeria that have gone into extinction, were thoroughly carried out to identify factors that contributed to their extinction. It was found out that; death of founder(s), financial constraint, poor management, market complexity and competitions are the main contributors to family business failures and extinctions in Southeastern, Nigeria. Thus, it was recommended family business owners should be liberal, open-minded, flexible and inclusive in making business decisions that will propel their enterprises to greater height. More so, competent hands, professional business consultants and advisors should be incorporated in managing the business. This will ensure the success and fecundity of the business. Though, the study encountered a slight challenge as regards to the availability of resources, because relevant information that would have enriched the result, were not documented or uploaded on the internet. However, the findings of the study contributed immensely to the body knowledge of family successes, growths and failures in Nigeria.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 12, Issue 5)
DOI	10.11648/j.ijefm.20241205.15
Page(s)	276-283
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Family Owned Business, Business Failures, Business Enterprise, Southeast, Nigeria

References

[1]	Agbim, K. C. Enhancing family business succession through intra-firm Network: A survey of family businesses in South Eastern Nigeria. Research Gate. 2018a. https://www.researchgate.net/publication/358140229
[2]	Agbim, K. C. Business network effect on the institutionalization of family businesses inSouth Eastern Nigeria. Open Journal of Economics and Commerce. 2018b. 1(1), 1-10.
[3]	Arregle, C.. Family-owned businesses. Family Business Review, 2007. 8(3), 121-130. https://doi.org/10.1111/j.1741-6248.1995.00121.x
[4]	Aronoff, C. E. & Ward, J. L. 2002. Family meetings: How to build a stronger family and astronger business. Marietta, GA: Family Enterprise.
[5]	Aronoff, C. E., McClure, S. L., & Ward, J. L. 2010. Family business succession: The final test of greatness (2nd ed.). Palgrave Macmillan. https://doi.org/10.1016/j.intman.2008.11.003
[6]	Chakrabarty. S.. The Influence of National Culture and Institutional Voidson Family Ownership of Large Firms: A Country Level Empirical Study. Journal ofInternational Management.. 2009. 1(2), 54-62. https://doi.org/10.1111/j.1741-6248.1998.00019.x
[7]	Chrisman, J. Important attributes of successors in family businesses: An exploratory study. Family Business Review, 2004. 11(1), 19-34.
[8]	Dingliana, S. L. Continuity in Indigenous Family Businesses: A Study of SuccessioninMizo Family Businesses. The SIJ Transactions on Industrial, Financial & Business Management (IFBM), 2013. 1(2), 101-104.
[9]	Dudaroglu, M. 2008. Relationship among family influence, top management teamissues, and firm performance: An empirical study of the automotive supplier industry inTurkey using structural equation modelling. Unpublished Ph. D Thesis, Yeditepe University, Turkey.
[10]	Dyer, G. Culture and continuity in family firms. Family Business Review, 2006. 1(1), 37-50. https://doi.org/10.1111/j.1741-6248.1988.00037.x
[11]	Hall, D., & Young, E. (1991). Revolution of family business. ambridge: Cambridge University Press.
[12]	Habbershon, T. & Williamson, M. (1999). A research based framework for assessing thestrategic advantages of family firms. Philadelphia: The Wharton School Press.
[13]	Hit, S. The prevalence of family business from a household sample. Family Business Review. 2007. I2(9), 209-224. https://doi.org/10.1111/j.1741-6248.1999.00209.x
[14]	Justino, M. V. 2015. Factors Influencing the Failure Of Small Enterprises In A Selected Municipality In Luanda, Angola. Published Thesis. Cape Peninsula University of Technology.
[15]	Kolawole. S 2013. Role of microfinance in Nigeria economy. Available at www.preshstore.com
[16]	Kaye, K. Mate selection and family business success. Family Business Review, 2009. I2(2), 107-115. https://doi.org/10.1111/j.1741-6248.1999.00107.x
[17]	Mahenthoran, S. K. 2009. Advance and trends in business. Boston: McGraw Hill.
[18]	Nahapiet, V., &Ghoshal, D. Qualitative research on family businesses: The relevanceand usefulness of the interpretive approach: Journal of Management and Organization. 1998. 15(11), 294-308. https://doi.org/10.1017/S183336720000471X
[19]	Onugu, B. A. N. 2005. Small and Medium Enterprises (SMEs) in Nigeria: Problems andprospects. A PhD dissertation, St Clement University. Retrieved from http://www.thecje.com/journal/index.php/economicsjournal/article/viewFile/17/8,www.stclements.edu/grad/gradonug.pdf
[20]	Osagie, C. 2012, FG Releases First National Survey on SMEs” Thidsday, July, 20.
[21]	Onuoha, C. B. Challenges and Problems of Professionalizing Family Businesses in South-East, Nigeria. American International Journal of Contemporary Research. Vol. 3(4), 2013. 130-138.
[22]	Ogundele, O. J. K., Idris, A. A. &Ahmed-Ogundipe, K. A. Entrepreneurial Succession Problems In Nigeria’s Family Businesses: A Threat To Sustainability. European Scientific Journal, 2015. Vol. 8(7), 208-220.
[23]	Poza, D. 2014. Family business. New York: South-Western: Cengage Learning.
[24]	Sajuyigbe, A. S., Oyedele, O.,&Unachukwu, J. C. (2016). Succession Planning and Generational Transition: The Greatest Challenges for Family-Owned Businesses in Nigeria. Academia. Retrieved from. https://www.academia.edu/29544957/Succession_Planning_and_Generational_Transition_The_Greatest_Challenges_for_Family_Owned_Businesses_in_Nigeria
[25]	Sirmon, J., &Hitt, C. Strategic management of the family business. Family Business Review, 2003. 10(1), 1-35. https://doi.org/10.1111/j.1741-6248.1997.00001.x
[26]	Young, E. (1991). Revolution of family business. Cambridge University Press.
[27]	Zahra, S. A., Hayton, J. C. &Salvato, C. Entrepreneurship in family vs. non-familyfirms: A resource-based analysis of the effect of organizational culture. EntrepreneurshipTheory& Practice, 2012. 28(4), 363-381. https://doi.org/10.1111/j.1540-6520.2004.00051.x

Cite This Article

Plain Text BibTeX RIS

APA Style

Ihionu, M. C., Maureen, I. O., Aneke, A. C. (2024). Causes of Failure Among Family Owned Businesses. International Journal of Economics, Finance and Management Sciences, 12(5), 276-283. https://doi.org/10.11648/j.ijefm.20241205.15

Copy | Download

ACS Style

Ihionu, M. C.; Maureen, I. O.; Aneke, A. C. Causes of Failure Among Family Owned Businesses. Int. J. Econ. Finance Manag. Sci. 2024, 12(5), 276-283. doi: 10.11648/j.ijefm.20241205.15

Copy | Download

AMA Style

Ihionu MC, Maureen IO, Aneke AC. Causes of Failure Among Family Owned Businesses. Int J Econ Finance Manag Sci. 2024;12(5):276-283. doi: 10.11648/j.ijefm.20241205.15

Copy | Download

@article{10.11648/j.ijefm.20241205.15,
  author = {Marcellinus Chukwuka Ihionu and Iyke Ofoedu Maureen and Alexander Chinaza Aneke},
  title = {Causes of Failure Among Family Owned Businesses
},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {12},
  number = {5},
  pages = {276-283},
  doi = {10.11648/j.ijefm.20241205.15},
  url = {https://doi.org/10.11648/j.ijefm.20241205.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20241205.15},
  abstract = {The study investigated the causes of failure among family owned businesses in South-East, Nigeria. Specific objectives were to; evaluate major family business enterprises that have failed in South-eastern states, Nigeria; investigate the causes of failure of these family owned business enterprisesidentified in South-eastern states in Nigeria; explore strategies that will help prevent such failures in other family owned business enterprises in Nigeria. The study adopted a qualitative approach in analyzing the causes. Historical analysis of ten indigenous family owned business situated in South-eastern, Nigeria that have gone into extinction, were thoroughly carried out to identify factors that contributed to their extinction. It was found out that; death of founder(s), financial constraint, poor management, market complexity and competitions are the main contributors to family business failures and extinctions in Southeastern, Nigeria. Thus, it was recommended family business owners should be liberal, open-minded, flexible and inclusive in making business decisions that will propel their enterprises to greater height. More so, competent hands, professional business consultants and advisors should be incorporated in managing the business. This will ensure the success and fecundity of the business. Though, the study encountered a slight challenge as regards to the availability of resources, because relevant information that would have enriched the result, were not documented or uploaded on the internet. However, the findings of the study contributed immensely to the body knowledge of family successes, growths and failures in Nigeria.
},
 year = {2024}
}

Copy | Download

TY  - JOUR
T1  - Causes of Failure Among Family Owned Businesses

AU  - Marcellinus Chukwuka Ihionu
AU  - Iyke Ofoedu Maureen
AU  - Alexander Chinaza Aneke
Y1  - 2024/09/26
PY  - 2024
N1  - https://doi.org/10.11648/j.ijefm.20241205.15
DO  - 10.11648/j.ijefm.20241205.15
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 276
EP  - 283
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20241205.15
AB  - The study investigated the causes of failure among family owned businesses in South-East, Nigeria. Specific objectives were to; evaluate major family business enterprises that have failed in South-eastern states, Nigeria; investigate the causes of failure of these family owned business enterprisesidentified in South-eastern states in Nigeria; explore strategies that will help prevent such failures in other family owned business enterprises in Nigeria. The study adopted a qualitative approach in analyzing the causes. Historical analysis of ten indigenous family owned business situated in South-eastern, Nigeria that have gone into extinction, were thoroughly carried out to identify factors that contributed to their extinction. It was found out that; death of founder(s), financial constraint, poor management, market complexity and competitions are the main contributors to family business failures and extinctions in Southeastern, Nigeria. Thus, it was recommended family business owners should be liberal, open-minded, flexible and inclusive in making business decisions that will propel their enterprises to greater height. More so, competent hands, professional business consultants and advisors should be incorporated in managing the business. This will ensure the success and fecundity of the business. Though, the study encountered a slight challenge as regards to the availability of resources, because relevant information that would have enriched the result, were not documented or uploaded on the internet. However, the findings of the study contributed immensely to the body knowledge of family successes, growths and failures in Nigeria.

VL  - 12
IS  - 5
ER  -

Copy | Download

Author Information

Marcellinus Chukwuka Ihionu

Department of Business Administration, Enugu State University of Sciences and Technology, Enugu, Nigeria

Contact Email
Iyke Ofoedu Maureen

Department of Management Sciences, University of Nigeria, Enugu Campus, Enugu, Nigeria

Contact Email
Alexander Chinaza Aneke

Department of Psychology, Enugu State University of Sciences and Technology, Enugu, Nigeria

Contact Email

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Ihionu, M. C., Maureen, I. O., Aneke, A. C. (2024). Causes of Failure Among Family Owned Businesses. International Journal of Economics, Finance and Management Sciences, 12(5), 276-283. https://doi.org/10.11648/j.ijefm.20241205.15

Copy | Download

ACS Style

Ihionu, M. C.; Maureen, I. O.; Aneke, A. C. Causes of Failure Among Family Owned Businesses. Int. J. Econ. Finance Manag. Sci. 2024, 12(5), 276-283. doi: 10.11648/j.ijefm.20241205.15

Copy | Download

AMA Style

Ihionu MC, Maureen IO, Aneke AC. Causes of Failure Among Family Owned Businesses. Int J Econ Finance Manag Sci. 2024;12(5):276-283. doi: 10.11648/j.ijefm.20241205.15

Copy | Download

@article{10.11648/j.ijefm.20241205.15,
  author = {Marcellinus Chukwuka Ihionu and Iyke Ofoedu Maureen and Alexander Chinaza Aneke},
  title = {Causes of Failure Among Family Owned Businesses
},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {12},
  number = {5},
  pages = {276-283},
  doi = {10.11648/j.ijefm.20241205.15},
  url = {https://doi.org/10.11648/j.ijefm.20241205.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20241205.15},
  abstract = {The study investigated the causes of failure among family owned businesses in South-East, Nigeria. Specific objectives were to; evaluate major family business enterprises that have failed in South-eastern states, Nigeria; investigate the causes of failure of these family owned business enterprisesidentified in South-eastern states in Nigeria; explore strategies that will help prevent such failures in other family owned business enterprises in Nigeria. The study adopted a qualitative approach in analyzing the causes. Historical analysis of ten indigenous family owned business situated in South-eastern, Nigeria that have gone into extinction, were thoroughly carried out to identify factors that contributed to their extinction. It was found out that; death of founder(s), financial constraint, poor management, market complexity and competitions are the main contributors to family business failures and extinctions in Southeastern, Nigeria. Thus, it was recommended family business owners should be liberal, open-minded, flexible and inclusive in making business decisions that will propel their enterprises to greater height. More so, competent hands, professional business consultants and advisors should be incorporated in managing the business. This will ensure the success and fecundity of the business. Though, the study encountered a slight challenge as regards to the availability of resources, because relevant information that would have enriched the result, were not documented or uploaded on the internet. However, the findings of the study contributed immensely to the body knowledge of family successes, growths and failures in Nigeria.
},
 year = {2024}
}

Copy | Download

TY  - JOUR
T1  - Causes of Failure Among Family Owned Businesses

AU  - Marcellinus Chukwuka Ihionu
AU  - Iyke Ofoedu Maureen
AU  - Alexander Chinaza Aneke
Y1  - 2024/09/26
PY  - 2024
N1  - https://doi.org/10.11648/j.ijefm.20241205.15
DO  - 10.11648/j.ijefm.20241205.15
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 276
EP  - 283
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20241205.15
AB  - The study investigated the causes of failure among family owned businesses in South-East, Nigeria. Specific objectives were to; evaluate major family business enterprises that have failed in South-eastern states, Nigeria; investigate the causes of failure of these family owned business enterprisesidentified in South-eastern states in Nigeria; explore strategies that will help prevent such failures in other family owned business enterprises in Nigeria. The study adopted a qualitative approach in analyzing the causes. Historical analysis of ten indigenous family owned business situated in South-eastern, Nigeria that have gone into extinction, were thoroughly carried out to identify factors that contributed to their extinction. It was found out that; death of founder(s), financial constraint, poor management, market complexity and competitions are the main contributors to family business failures and extinctions in Southeastern, Nigeria. Thus, it was recommended family business owners should be liberal, open-minded, flexible and inclusive in making business decisions that will propel their enterprises to greater height. More so, competent hands, professional business consultants and advisors should be incorporated in managing the business. This will ensure the success and fecundity of the business. Though, the study encountered a slight challenge as regards to the availability of resources, because relevant information that would have enriched the result, were not documented or uploaded on the internet. However, the findings of the study contributed immensely to the body knowledge of family successes, growths and failures in Nigeria.

VL  - 12
IS  - 5
ER  -

Copy | Download