Key Takeaways from PwC Nigeria’s 2021 Nigeria Family Business Survey
PwC Nigeria has published its latest Nigeria Family Business Survey which mainly examined how the COVID-19 pandemic impacted family-owned businesses in 2020, as well as other issues/challenges they currently face. The 40-paged report also explained that the pandemic posed both tremendous challenges and opportunities to family businesses. Below are the key takeaways from the report.
- 41% of Nigerian family-owned businesses expected a decline in sales growth in 2020 (46% globally), a sharp turnaround relative to 53% who experienced growth pre-COVID. On a brighter note, 66% expect to grow in 2021 and are more ambitious for 2022 (94%). Only 25% cut dividends at the expense of salaries to owners but staff of Nigerian businesses received less staff support than the global average.
- Although 60% of the respondents worried that their digital capabilities are not strong, only 34% have deemed it a priority. PwC Nigeria noted that this is a similar picture around the world.
- 50% of the family-owned businesses that participated in the survey admitted that they have no governance policies in place. Only 25% have succession plans and 9% have a family constitution. Over three quarters said they have a clear sense of values but only 31% have this documented.
- 63% said one of their key priorities over the next two years is to introduce new products/services well over the global average of 50%. Sustainability is lower down the priority order but traditional philanthropy to local communities is significantly higher than the global average.
- 70% said that in order to succeed going forward they must deliver greater benefits for the planet and human society(global 53%). 91% of Nigerian family businesses engage in some form of social responsibility activities to the local community which is still traditional. Only 33% have a sustainability strategy in place (37% globally).
The report concluded by noting that family businesses are integral to the growth of the Nigerian economy. With this in view, therefore, there is an immediate need to effect certain changes that will ensure their continued success. These changes include: transforming their digital capabilities, putting governance structures in place, expanding into new products and service areas, etc.
EDITOR’S NOTE: Read the full Nigeria Family Business Survey by downloading it right here.
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