Oluchi Johnson-Achibiri has a background in Management Consulting and is…
There is nothing quite like the entrepreneurial spirit that sparks the launch – and spurs the growth – of a family business. The combination of performance, profit, and family pride can be a powerful force in driving founders and owners to build great businesses and valued brands. Like every other business in Nigeria, family businesses have their peculiarities and challenges. While family businesses have the unique characteristics of a family, they, like other companies are often in search of financing to propel growth. As a family grows and changes, the family business must also evolve to accommodate changing family dynamics.
More so, the future of the family members, maintaining the independent nature of the family business and the preservation of family unity depends on the growth of the family business and its capacity to generate sufficient profit for all its members.
Mindful of these challenges faced by family businesses in Nigeria, KPMG developed a Nigerian Family Business Survey Report to share insights, experiences and fact based information on matters relating to running a family business.
The survey report reveals that family businesses in Nigeria have demonstrated strong resilience to external pressures and challenges in the last one year and are optimistic about the future. To grow their business, company leaders are investing in two areas: core business and innovation/new technology.
The Report also showed an overwhelming number of respondents (98%) validating the fact that having good governance structures and processes is a key driver for the success of their business. The respondents highlighted limited access to finance (47%), fluctuating exchange rate (42%), and declining profitability (27%) as the top three concerns for family businesses in Nigeria. Limited access to finance also continues to be a key challenge for businesses in Nigeria. Almost half (42%) of respondents indicated infrastructure development as an area whose improvement would boost growth and improved profitability for their businesses.
Family businesses are unique and different for each family, but the insights shared in this survey can potentially help Nigerian family businesses maximize value and position their businesses to thrive and endure from one generation to the next.
You can download the Nigerian Family Business Barometer Survey Report here.