Acta Universitatis Danubius. Œconomica, Vol 11, No 5 (2015)

Abstract

Objectives: The study attempted to assess the factors that are affecting business performance of small to medium sized family owned businesses in the Zimbabwean retail sector. The objective was to establish the effect of innovation, management skills, succession planning and corporate governance on family owned SMEs in Zimbabwe.

Prior Work: The study sought to complement other previous studies that were carried out in other different contexts by producing evidence on the same phenomenon from a developing country context.

Approach: The study adopted a quantitative approach. A self-administered survey was conducted to collect data that was analysed using descriptive, correlation and regression analyses.

Results: The results showed that the most significant factors affecting business performance in order of predictive power were innovation, proper management skills, succession planning and corporate governance.

Implications: The findings have implications to family business managers and owners in Zimbabwe who are encouraged to be innovative, properly manage, practise succession planning and be guided by business morals in managing their enterprises.

Value: Whilst the factors ensuring the success of Small and Medium sized enterprises have extensively been examined, there is dearth of research on family business success factors especially in a developing country like Zimbabwe.

JEL: M10

SMEs, family business, innovation, succession planning, corporate governance.