Critical success factors for the sustainability of family businesses in South Africa

Abstract

Family businesses make up a sizable portion of all businesses in South Africa, yet fairly little research has been conducted to provide insight into the complexities of these business entities. The research explored limitations, enablers, threats, and possible success factors that have a direct impact on family businesses transferal from one generation to the next. The research process consisted of a literature review that analysed international literature and where available, literature pertaining to South Africa. In addition, fifteen semi-structured interviews were conducted with family business operators between the first, second, third, and fourth generations. This was done to gain insight into the perceptions of the family business stewards to identify possible success factors that may be adopted for continued success from one generation to the next. Through this qualitative study, it was found that although the largest threats are located internally, stewards consistently focus outward for achieving family business sustainability from one generation to the next. These threats are predominantly rooted in succession, however, not in the process of succession specifically, but the enablers of succession.