Factors Affecting the Growth of Family Businesses in Tarkwa-Nsueam Municipality, Ghana

Abstract

Family businesses are widely seen as the backbone of an economy since they create wealth, provide jobs, are locally rooted and connected to their communities and seem to be around for long periods of time. This study assessed the factors affecting the growth of family businesses in Tarkwa-Nsueam Municipality in Ghana. To achieve this objective, the study employed the quantitative research approach, descriptive research design, and cross-sectional study design. A multi-stage sampling procedure was used to select 274 managers of family businesses from a population of 965. In all, 220 managers responded to the study, hence a response rate of 80.29% was attained. The non-response rate was 19.71%. A questionnaire was employed and it was semi-structured, pre-tested, and self-administered. IBM SPSS Statistics for windows, version 24 was employed in analysing the data collected. Mean, standard deviation, and one-sample t-test revealed the existence of countless internal and external factors that affected the growth of family businesses in Tarkwa-Nsueam Municipality. The internal factors included conflict between owners and managers, education and training of entrepreneurs and employees, attitudes to work, resources, and entrepreneurs’ level of financial literacy, entrepreneurial skills, supervisory support to newly established businesses, acquisition of vocational skills, managerial skills and knowledge, and personality traits of the entrepreneur. Among the external factors were gender equality, cultural factors, access to external credit, legal factors/government regulation, work-home conflict, industry characteristics, and regulatory environment. Recommendations have been made to improve on the growth of family businesses in the area.