Assessment of Factors for Succession Planning in Family – Owned Fish Trading SMEs in Mwanza City, Tanzania

Abstract

Small and Medium Enterprises (SMEs) have been considered the engine of economic growth in both developed and developing countries. However most of these SMEs live only one generation due to lack or inefficient succession planning. The literature review discusses the theories of succession planning, including systems theory, agency theory, resource-based approach, and stewardship perspective, which provide insights into the dynamics of family businesses. This research adopts a quantitative research approach. The study include family owned fish trading SMEs sampled from Mwanza City. Subjects for the study come from a population of family fish trading SMEs within Mwanza City. The study employs purposive sampling, whereby judgmental sampling technique will be employed to select respondents. The study applied primary and secondary data. Secondary data related to the study were gathered from different sources including policies and different reports from the sampled SMEs. Secondary source helped the researcher to gather information about organizational structure, written succession plan and strategic plan of the sampled SMEs. Primary data were collected from the field by using questionnaires. This research addresses the critical issue of succession planning in family-owned fish trading SMEs in Mwanza. The study's findings can be used by government policymakers, SME managers, and consultants to develop better strategies for succession planning and ensure the continuity of family-owned businesses.