Purpose: The bedrock of family governance
In our observation, Family Businesses are strong on the Vision and Purpose of the founder. This is true for Nigeria as well. It is the purpose and drive of the Founder that shapes the fortunes of the family business and his/ her values and passion that lay the strong foundations. The key issue then becomes how the founder articulates his/her vision so that the rest of the family (especially the nextgen) are able to build on it for the business to thrive into the following generations. Our experience shows that this is a critical phase in the development of the family’s business and one that requires careful thought and planning.
Our most recent Family Business Survey 2021 had some worrying statistics on this – 50% of family businesses in Nigeria have no governance policies compared to 21% globally. Only 25% have succession plans (30% globally) and 9% (28% globally) have a family constitution. Over three quarters say they have a clear sense of values but only 31% have this documented. Clearly this is a big issue that needs to be addressed urgently in Nigeria.
Contact us
Esiri Agbeyi
Partner | Private Clients & Family Business Leader, PwC Nigeria
Tel: +234 (1) 271 1700
