Free Access | October 2026

Fostering Intergenerational Continuity Of Family Businesses In Uganda

Authors/Editors: Linda Nakato PhD ,  Medard Kakuru ,  Pauline Nakitende ,  Smartson Ainomugisha ,  Prof. Rogers Matama

Abstract:

Family businesses in Uganda are navigating increasing pressures arising from the intersection of family dynamics and busi ness operations, coupled with external challenges such as market competition, governance constraints, and limited access to investment. This study examined the sustainability of family businesses, focusing on practices that enhance continuity and resilience. Using interview data from family business owners across Uganda’s Central, Western, Eastern, and Northern regions, key findings reveal that family involvement is foundational to business sustainability, with visionary founders and merit-based participation strengthening stability and professionalism. Strategic planning, particularly when inclusive of younger genera tions, fosters innovation and adaptability. Strong governance structures such as boards, family councils, and constitutions enhance transparency and accountability, while effective succession planning through early mentorship and structured tran sitions minimizes generational conflict. Financial discipline, separation of personal and business finances, and reinvestment of profits enable stability and growth. Human resource management grounded in merit and continuous training improves performance and reduces family conflict. Social capital, trust, and community relationships further reinforce business lon gevity. Environmental consciousness is also gaining traction with eco-friendly practices contributing to cost reduction and social goodwill. The report further highlights succession planning, particularly a lack of interest from the younger generation in joining the family business, financial indiscipline, managing family members employed in the business, high taxes, high interest rates, and unregulated competition from the informal sector as key challenges facing family businesses.