Many family-owned businesses in Africa fail to survive after the death of their founders, mainly because of poor planning, family conflicts, and weak management structures.
In many cases, founders run their businesses alone and keep important knowledge, decisions, and control to themselves. When they pass away, there is often no clear succession plan, leaving family members confused about who should take over leadership.
Family disputes are another major challenge. After the founder’s death, disagreements may arise over ownership, management roles, and sharing of profits. These conflicts can divide families and weaken the business, sometimes leading to its collapse.
Another problem is the lack of professional management. Many family businesses rely on trust rather than skills when appointing leaders. When unqualified relatives take charge, the business may struggle to compete, adapt to market changes, or manage finances properly.
Legal and financial issues also contribute to failure. Some founders do not prepare wills or formal business documents. This creates uncertainty over asset ownership and can result in long court battles that drain business resources.
Experts say African family businesses can improve their chances of survival by planning early. This includes training the next generation, separating family matters from business operations, hiring professionals where necessary, and setting clear rules on leadership and ownership.
With proper succession planning, good governance, and open communication among family members, family businesses can continue to grow and remain strong even after the founder is gone.
