Business analysts are urging family-owned enterprises to establish robust succession plans and organizational structures to ensure long-term viability and sustainability. These calls come in response to alarming statistics that reveal the precarious nature of many family businesses, which constitute approximately 70 percent of all businesses worldwide.

Despite their prevalence, many family businesses struggle to survive beyond a few years of operation. Research indicates that while these businesses often aspire to aggressive growth, 43 percent lack a formal succession plan, and only 12 percent successfully transition to a third generation.

During a recent family business forum, Mr. Kingsley Owusu-Ewli, Director of Tax Services at PricewaterhouseCoopers Ghana Ltd, emphasized the importance of a forward-looking succession plan. He stressed that such a plan should clearly outline the future leadership of the organization, focusing on who will succeed the current owner and steer the business toward optimal performance.

Owusu-Ewli also highlighted the necessity of staying attuned to both local and global business trends. This awareness, he argued, enables family businesses to adapt effectively, understand competitive dynamics, and anticipate market shifts.

He further advised family-owned enterprises to embrace professionalism by incorporating non-family members into key management roles. This approach, he suggested, could enhance operational efficiency and help position the business for long-term success.

Dr. Elikem Tamaklo, Managing Director of Nyaho Healthcare Limited, shared insights from his experience managing his father’s healthcare facility. He underscored the importance of establishing clear governance standards, both for the family and the business. According to Dr. Tamaklo, these standards are crucial for maintaining clarity in decision-making processes, which are often distinct between family matters and business operations.

Mr. Edward Eyram Gomado, Partner at PricewaterhouseCoopers Ghana Ltd, added that family businesses should not overlook the importance of exit and emergency plans. He warned that in cases of non-performance, there must be mechanisms in place to remove underperforming individuals before the business suffers irreparable damage. Additionally, Gomado advised that having an emergency plan is vital for navigating unforeseen challenges and ensuring business continuity until a suitable successor is identified.

The forum underscored the critical need for family businesses to adopt structured, forward-thinking approaches to ensure their survival and success across generations.