Small business guide to succession planning

Do you have a succession plan for your business?

PwC’s Africa’s Family Business Survey 2021 noted that 76% of African family businesses don’t have succession plans in place. Only 41% of these business owners have a last will/testament in place, which means that, when they die, there is no fixed plan to ensure that the business is formally passed down to the next generation.

What is a succession plan?

A succession plan is a strategy to safeguard the future of a business by replacing key employees should death, disaster, or any other exit require it.

Why should small businesses have a succession plan?

Good succession planning acts as a business’s insurance policy for sustainability. Top roles are often difficult to fill – especially at short notice – and small businesses need to be prepared to react to departures, whether they are planned or not. 

What happens to a business without a succession plan?

Without a clear succession plan in place, the business is at risk of being ‘in limbo’ while the search for a replacement is on. This could result in significant losses to the company and an unmotivated and fear-driven workforce. Current employees could compete for the vacancy, and there could even be animosity towards a new hire if they weren’t part of the original workforce. Worst case scenario is that the business could fail without its leader or a suitable replacement at the helm.

·        What to include in a succession plan?

·        How to identify employees for succession planning

·        What are succession plan options for small businesses?

·        Who can help small businesses with succession planning?

·        What to avoid when succession planning


To find answers to these and more read the full article here.

0 0 votes
Article Rating
Notify of
Would love your thoughts, please comment.x
Scroll to Top


The only thing that interferes with my learning is my education. - Albert Einstein

Log In to Your SAIBA Account!

Please Login
Username can not be left blank.
Please enter valid data.
Password can not be left blank.
Please enter valid data.
Please enter at least 1 characters.