Experts list ways to sustain family business

Tosin Kolade
Mar, Fri, 2025

Economy/Business

Experts list ways to sustain family business

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By Rukayat Moisemhe

Business experts have emphasised the importance of stewardship in sustaining family businesses across generations.

They spoke at the Lagos Business School (LBS) International Family Business Conference on Thursday in Lagos.

The experts also highlighted the need to build resilient governance structures, foster intergenerational collaboration, and prepare future leaders to uphold and expand family business vision.

Mr Aigboje Aig-Imoukhuede, Co-Founder, Tengen Family Office, stressed the importance of balancing family values with business growth to ensure a lasting legacy.

Aig-Imoukhuede, also former Managing Director, Access Bank Plc, said family-owned businesses accounted for 60 to 80 per cent of private businesses worldwide.

He, however, noted that in Africa, family business rarely survive one generation due to weak succession planning and governance frameworks.

Aig-Imoukhuede said the concept of stewardship, a leadership philosophy, placed family members as enterprise caretakers focused on preserving growth for future generations.

According to him, stewardships nurtures successors, preserving them for strategic, tactical, and operational responsibilities, while preserving family relationships.

He said the culture of stewardship flourished where family cohesion was high, with a commitment to long-term value creation.

“The challenges in stewardship and legacy building include the burden of legacy, managing growing responsibilities and interpersonal conflicts, among others.

“In addressing this, there must be well laid out communication strategies, open dialogue practices, establishing clear roles and responsibilities.

“A conflict and dispute resolution mechanism must be in place with expectations properly managed,” he said.

Prof. Yinka David-West, Dean, LBS, said family businesses were not just enterprises, but living legacies as backbones of economies, custodians of tradition, and innovation pioneers.

David-West noted that sustaining a family business across generations was one of the most significant leadership challenges.

She said while many first-generation businesses thrived, fewer survived into the second, and only a fraction make it to the third.

She stated that the difference between those that endured and faced was stewardship—the art of nurturing wealth, wisdom, succession, and a lasting legacy.

“That is why this year’s theme: “Preparing the Next Generation for Stewardship: Building a Lasting Legacy for Family Businesses,” is so critical.

“The LBS mission is to illuminate the principles of stewardship as the foundation for enduring success.

“We are committed to equipping next-generation leaders with the mindset and skills to lead with heritage and innovation.

“This event would also bridge gap between tradition and transformation, ensuring family businesses remain competitive, cohesive, and future-ready,” she said.

The Founder, Coscharis Motors, Dr Cosmas Maduka, noted that if everything a person lived for dies when the individual dies, such person has not lived successfully.

Maduka said the child with the most burning desire for the business with the proper structure in place should be one to take the baton of leadership in family business succession.

Mrs Adeolu Idowu, Partner, Aluko and Oyebode, urged business owners to employ the services of business advisors to provide evaluation on risk and family governance in the business.

Dr Chiedu Nwuke, Founder, Periwinkle Residences Ltd., noted that the most important focus must be on brand creation and passing the vision of the brand across generations.(NAN)

Edited by Chinyere Joel-Nwokeoma

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