Family business succession planning in the Gambia textile market

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Tezin Türü: Yüksek Lisans

Tezin Yürütüldüğü Kurum: İstanbul Ticaret Üniversitesi, Sosyal Bilimler Enstitüsü, Türkiye

Tezin Onay Tarihi: 2021

Tezin Dili: İngilizce

Öğrenci: AMINATA DRAMMEH

Danışman: KELEŞ TAYŞİR NURGÜL

Özet:

ABSTRACT When we talk about the family business, we refer to family entrepreneurship and entrepreneurs’ immense contribution to a country’s economy regarding employment, growth, and competitive advantages. However, it is noticed that only a few family businesses pass to the next generation. In The Gambia, family businesses create employment and contribute to economic diversification and transformation. The Gambian government and international bodies have set up projects to support the growth of businesses in the country, aiming to promote awareness and social networking between the public and private sectors in entrepreneurship mindset in the society. The Gambia targets five main groups for entrepreneurial skill educational development: the women, low literacy group, rural population, youths, and the disabled who have a passion for business. However, this study aims to analyze family businesses in The Gambian textile sector and their succession plans. Specifically, this paper seeks to find answers to these questions: ‘Why the number of family businesses passing to the next generation is limited?” and “What can be done to increase family business succession in The Gambia Textile Market?”. The qualitative research method was used in this study to interact with people who own family businesses and understand how they transfer the company from founder to successors. Semistructured interviews were conducted with ten family business owners in the urban area, mainly in Serekunda (largest market under the Kanifing Municipal Council) and Banjul (the capital city of The Gambia). Keywords: Family business, succession planning, textile industry ÖZET Aile şirketi dediğimizde, aile girişimciliği ve girişimcilerin istihdam, büyüme ve rekabet avantajları açısından bir ülke ekonomisine yaptığı muazzam katkıyı kastetmekteyiz. Ancak, sadece birkaç aile şirketinin bir sonraki kuşağa geçtiği fark edilmektedir. Gambiya'da aile şirketleri istihdam yaratmakta ve ekonomik çeşitlilik ve dönüşüme katkıda bulunmaktadır. Gambiya hükümeti ve uluslararası kuruluşlar, toplumda girişimcilik zihniyetinde kamu ve özel sektör arasında farkındalık ve sosyal ağ oluşturmayı teşvik etmeyi amaçlayan ülkedeki işletmelerin büyümesini desteklemek için projeler oluşturmuştur. Gambiya, kadınları, düşük okuryazarlık grubunu, kırsal nüfusu, gençleri ve iş tutkusu olan engellileri içeren girişimci beceri eğitim gelişimi için beş ana grubu hedeflemektedir. Ancak, bu çalışma Gambiya tekstil sektöründeki aile işletmelerini ve onların halefiyet planlarını incelemeyi amaçlamaktadır. Bu çalışma özellikle şu soruların yanıtlarını aramaktadır: “Gelecek nesle geçen aile şirketlerinin sayısı neden sınırlıdır?” ve “Gambiya tekstil sektöründe aile şirketi başarısını artırmak için neler yapılabilir?”. Bu çalışmada, aile şirketi sahibi kişilerle etkileşim kurmak ve şirketi kurucudan haleflere nasıl aktardıklarını anlamak için nitel araştırma yöntemi kullanılmıştır. Başta Serekunda (Kanifing Belediye Meclisi altındaki en büyük pazar) ve Banjul'da (Gambiya'nın başkenti) olmak üzere kentsel alanda on aile şirketi sahibiyle yarı yapılandırılmış görüşmeler yapılmıştır. Anahtar Kelimeler: Aile şirketi, halefiyet planlaması, tekstil endüstrisi TABLE OF CONTENTS PAGE ABSTRACT. iii ÖZET . iv ACKNOWLEDGEMENT. v LIST OF TABLES . x LIST OF FIGURES. xi LIST OF ABBREVIATION AND ANONYMS . xii 1 CHAPTER: INTRODUCTION. 1 1. 1 Background Information of the Study . 1 1. 2 Problem Statement. 2 1. 3 Research Goal . 2 1. 4 Significance of the Study . 2 1. 5 Organization of the Paper . 3 2 CHAPTER: LITERATURE REVIEW. 4 2. 1 Definition of Family Business. 4 2. 2 Advantages and Disadvantages of Family Businesses . 7 2. 3 Family Succession . 9 2. 4 Family Business Succession Planning. 11 2. 5 Family Business Succession Process. 12 2. 5. 1 Management Succession Process. 14 2. 5. 2 Ownership Succession Process. 15 2. 6 Challenges of Family Succession Planning . 16 2. 7 Barriers to Effective Succession . 16 2. 7. 1 Unhealthy Family Relations . 17 2. 7. 2 The Unwillingness of the Incumbent to Step Aside . 17 2. 7. 3 Aptitude and Unwillingness of the Successor . 18 2. 7. 4 Succession Planning. 18 2. 7. 5 Mutual Role Adjustment. 19 2. 7. 6 Lack of Open and Honest Communication. 19 3 CHAPTER: GAMBIA CONTEXT. 20 3. 1 General Background . 20 3. 2 The Gambia Business Market. 21 3. 2. 1 Economic Climate. 22 3. 2. 2 Market Size . 22 3. 2. 3 Infrastructure. 23 3. 2. 4 Energy. 23 3. 2. 5 Human Capital/Labor. 23 3. 3 Projects Funded by International Organizations Such As WTO, AGOA to Support African Textile Market . 24 3. 4 Family Businesses in Sub-Saharan Africa. 25 3. 4. 1 Economic/Political Factors. 25 3. 4. 2 Social/Cultural Factors. 26 3. 5 Family Business Models. 27 3. 5. 1 System Theory Model. 27 3. 5. 2 Family-First Model . 27 3. 5. 3 The Concentric Model . 28 3. 6 The Government Intervention on Educating Family Business Owners in The Gambia29 4 CHAPTER: RESEARCH METHODOLOGY . 31 4. 1 Research Design. 31 4. 2 Data Collection Process. 32 4. 2. 1 Population and Sampling . 33 4. 2. 2 Allocating Participants. 34 4. 2. 3 Preparing Interview Guide. 34 4. 3 Conducting the Interview. 35 4. 3. 1 Recording the Interview. 35 4. 3. 2 Probing. 35 4. 3. 3 Finishing the Interview . 36 4. 4 The Analysis Processes. 36 5 CHAPTER: DATA ANALYSIS AND FINDINGS. 38 5. 1 Participants’ Profiles. 38 5. 1. 1 Business Details. 39 5. 2 Case Presentations . 40 5. 2. 1 Case 1. 40 5. 2. 2 Case 2. 42 5. 2. 3 Case 3. 43 5. 2. 4 Case 4. 46 5. 2. 5 Case 5. 47 5. 2. 6 Case 6. 49 5. 2. 7 Case 7. 50 5. 2. 8 Case 8. 52 5. 2. 9 Case 9. 53 5. 2. 10 Case 10. 54 5. 3 The Firms in Second Generation Succession Process Details. 56 5. 3. 1 Satisfaction with the Succession Experience. 57 5. 4 The Firm’s Succession Plan for the Next Generation. 58 5. 5 Business Challenges. 60 5. 6 Life Experiences That Will Contribute to Successful Business Succession. 61 5. 7 Experiences to Use in Future Succession and the Ones to Avoid . 63 5. 8 The Importance of Succession Plan in Family Business’s Future. 64 6 CHAPTER: CONCLUSION, RECOMMENDATIONS AND LIMITATIONS . 65 6. 1 Conclusion . 65 6. 2 Recommendations. 68 6. 3 Limitations of the Study. 69 REFERENCES. 70 APPENDIX A. 76 APPENDIX B. . 78