DOES SUCCESSION PLANNING MATTER FOR SMES SUSTAINABILITY? A CASE OF NORTH-CENTRAL GEOPOLITICAL ZONE OF NIGERIA

ABSTRACT

In this paper, the relations between succession planning and sustainability of small and medium scale enterprises (SMEs) in North-central of Nigeria was assessed. The paper focused on two fundamental dimensions of succession planning (internal and external development and retaining of talent) and how they affect SMEs sustainability.  The descriptive research survey design (via the administration of questionnaires) and One Way Analysis of Variance (ANOVA) were employed and findings indicated a significant difference in perception of respondents on succession planning and SMEs sustainability in North-central of Nigeria.  Based on the findings, it was recommended that SMEs should have succession laws to ensure smooth transition as well as the roles of the successor should be greatly reemphasized. Again, SMEs succession plans should be a combination of internal and external development and retaining of successors. More importantly, successors for SMEs should be based on merit to ensure that the right and experienced person manage the enterprises.

Keywords:         Succession planning; Enterprise Sustainability; Small and Medium Enterprises; Internal Talents; External Talents. JEL Classification: M13; M19; Q56