Succession Management and Sustainability of Family Owned Small and Medium Enterprises (SMEs) in Enugu State

Succession management serves as a critical component which determines the sustainability and growing of family-owned Small and Medium Enterprises (SMEs). The research study investigated how succession management practices affect the ongoing survival of family-owned businesses which operate as Small and Medium Enterprises in Enugu State Nigeria. The research analyzed three main aspects: the effect of successor training programs on business growth rate and the impact of family business governance on employee retention rate and formal succession policies on revenue stability. The research study followed a survey research method which gathered primary data through structured questionnaires from 216 respondents who operated family-owned SMEs in the Enugu metropolitan area. Hypothesis testing utilized Structural Equation Modeling (SEM) in IBM SPSS AMOS 26.0 at a 0.05 significance level. The study showed that succession management practices create a substantial impact on the performance of family-owned SMEs according to the results (p < 0.001). The programs which train successors lead to major business growth because they show mentorship and leadership development and decision-making skills determine market expansion (β = 0.58, p < 0.001). Family business governance along with clearly defined roles and effective conflict resolution and equitable decision-making processes lead to higher employee retention rates (β = 0.61, p < 0.001) because these factors help reduce employee turnover. Organizations that develop written succession plans and financial planning strategies create revenue stability according to the study results (β = 0.54, p < 0.001). The study concludes that effective succession management is vital for the long-term survival of family-owned SMEs.