LBS moves to save family businesses from collapse

Concerned about the protection of family businesses and the jobs they support, the Lagos Business School has concluded plans to host the inaugural edition of the Family Business Conference which will, among other deliberations, feature discussions by family business leaders on the impact of family dynamics, governance, succession on survival and sustainability of family-owned businesses.

Daily Trust reports that family businesses constitute more than 80 to 90 per cent of the SMEs in the country.

The LBS conference was designed largely due to concerns around the high mortality rate of family businesses especially in Nigeria while the conference is also expected to assess those that have survived over the decades.

The Director of the Family Business Initiative at LBS, Dr Okey Nwuke, during a press conference to herald the inaugural event scheduled to hold at the Lagos Continental Hotel on Friday, April 12, 2024, noted that many family businesses died over the inability to manage transition.

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The theme of the conference is ‘From Family Enterprise To Family Institution: Climbing The Longevity Ladder.’

According to Nwuke, a lot of family businesses die due to issues around succession and identification of leaders within the family that would take over the businesses.

“A lot of owners talk about succession when they are incapacitated,” he added, adding that the LBS-FBI aims to make intellectual contributions by positively impacting African family businesses through advisory services, case studies, teaching materials, seminars, conferences and family business awards.

He said, “Family enterprises often start small, with a focus on meeting the needs of the immediate family members. However, as the business grows and becomes more successful, the family business must transition from a mere enterprise to a strong family institution.

“This transition involves implementing structures and processes that ensure the long-term sustainability and continuity of the business across generations.”

The Group Managing Director, Saroafrica, Mr Rasheed Sarumi, who spoke at the briefing, said many family businesses tend to do better than most companies due to the tenacity and commitment to weather the storm.

Throughout the ascent, participants will navigate the crucial rungs of succession planning, effective governance structures, wealth management, and cultivating a vibrant family culture.

The keynote speaker at the conference, the Chief Executive Officer of The Chair Centre Group, Ibukun Awosika, will join other business leaders to discuss the theme.

Some of the other speakers, moderators and panellists at the event will include the Dean of the Lagos Business School, Prof Chris Ogbechie; Dr Okey Nwuke; Mr. Rasheed Sarumi, the Senior Partner & Head of the Family Business Practice, KPMG, Nigeria, Mr. Segun Sowande, among others.