STRATEGIES OF FAMILY-OWNED BUSINESSES AND GROWTH OF BUSINESSES IN ENUGU NORTH AND EAST LOCAL GOVERNMENT AREA OF ENUGU STATE, NIGERIA
Abstract
The aim of this study was to investigate the strategies employed by family-owned businesses in Enugu North and East Local Government Areas (LGAs) to facilitate the growth of their businesses over time. To achieve this aim, specific objectives were outlined, including: To assess the extent to which product diversification is linked to the growth of family-owned businesses in Enugu North and East LGAs. To examine the adoption of new product development as part of the growth efforts of family-owned businesses. To determine the degree to which family-owned businesses in Enugu North and East, LGAs have embraced new market development as a growth strategy. To gather data for this study, a survey approach was employed. The study population consisted of 312 entities, with a sample size of 225 determined using Freund and Williams' formula. The validity of the research instrument was assessed through content analysis, and the results indicated its reliability. Data collected was presented and analyzed using the mean score approach, where scores of 3.0 and above were interpreted as agreement, while scores below 3.0 were considered as disagreement. Additionally, standard deviation was computed using the Sprint Likert Scale. Hypotheses were analyzed using the Z-test. The study's findings revealed several significant relationships: The relationship between product diversification and enhanced product quality was found to be significantly high (r = 0.678, n = 225, p > 0.05). Similarly, the relationship between the adoption of new product development and the growth of family-owned businesses was also significantly high (r = 0.641, n = 225, p > 0.05). Finally, the study established a significantly high relationship between the new market development strategy and the growth of family-owned businesses (r = 0.460, n = 225, p > 0.05). In conclusion, this study underscores the importance of family-owned businesses as commercial organizations in which decision-making is influenced by multiple generations of a family, connected through blood, marriage, or adoption. These businesses possess the capability to shape the vision of the enterprise and the willingness to utilize this ability in pursuit of distinct goals. Based on the study's findings, it is recommended that product diversification be recognized as a strategic tool for achieving strategic relevance and enhancing overall business performance. Organizations are encouraged to incorporate product diversification into their business strategies to gain a competitive advantage in the market.
Keywords:
Family-Owned Businesses, Growth Strategies, Product Diversification, New Product Development, Market Development, Competitive AdvantageDownloads
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https://doi.org/10.5281/zenodo.8367297Issue
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References
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