Free Access | 2024-04-12

Ensuring Continuity: Succession Planning Strategies for Ugandan Family Enterprises

Authors/Editors: Linda Nakato ,  Pauline Nakitende

Abstract:

Family businesses are central to Uganda’s economy, contributing over 70 percent of GDP and forming the majority of Micro, Small, and Medium Enterprises. Despite their importance, most family businesses cannot transition beyond the founding generation. This policy brief examines succession planning practices and implementation challenges among established family businesses in Uganda. The findings show that some established family businesses are adopting promising succession planning practices, including early exposure of the younger generation to the business, hands on learning across operational levels, deliberate transfer of business networks, and gradual formalisation of transition processes. However, succession planning remains constrained by founder dominance, limited interest among younger family members, gender-biased succession norms, and the complexities arising from polygamous family arrangements. To ensure better succession planning, there is a need to promote early engagement of the younger generation in the business and formalise the succession process for structure and clarity during transition.