Entrepreneurial orientation and succession planning among small and medium family-owned enterprises in Kampala Central Business District, Uganda

Abstract

The study investigated the relationship between entrepreneurial orientation and succession planning among small and medium family-owned businesses in Uganda. The study employed a cross-sectional survey and descriptive research designs using a quantitative approach. Data were collected using a closed-ended questionnaire from 176 small and medium family-owned businesses. The data were analysed using Smart PLS version 4.0. The results show that competitive aggressiveness and risk taking are positively and significantly related to succession planning. In contrast, proactiveness and autonomy showed no relationship with succession planning among small- and medium-sized family-owned businesses in Uganda. The study employed a cross-sectional survey; however, given the evolving nature of entrepreneurial orientation, a longitudinal study is recommended. Future studies should examine other antecedents of entrepreneurial orientation, such as social emotional wealth, innovation orientation among others which are key in family businesses. Family business owners should incorporate calculated risk-taking and competitive drive into their succession planning, while also promoting a collective vision and consensus when exercising autonomy and proactivity. This study uniquely shows how integrating calculated risk-taking and competitive aggressiveness with goal-setting theory enhances succession planning.