CHAPTER I
INTRODUCTION
1.0 Introduction
The purpose of the chapter was to explain how strategic planning helps family businesses
survive. Case Study: Small and Medium-Sized Bakeries in Bulawayo. The majority of
researchers agree that family businesses play a crucial economic and social role in most
countries and contribute to the growth of the economy through the creation of jobs and wealth.
Family Business succession and sustainability issues have received a lot of attention over the
past few years. According to Olufemi (2021), 88% of businesses fail to make it to the third
generation. A family business's activities, as well as its management and ownership, must be
considered when planning for the future. Enudu and Ikechukwu, 2022). As a result, the
objectives of the study, which serve as the primary guides for supporting the study, research
questions, and the study's limitations will be outlined in this chapter.
1.2 Background
Ward (2020) asserts that family businesses are a significant source of national income and an
essential component of any nation's socioeconomic environment. In Europe, family-owned
businesses account for more than 75% of all businesses and nearly half of all jobs. The majority
of these businesses have fewer than ten employees, according to a 2019 study by Dunemann
and Barrett. The majority of the GDP in the United States is owned by family businesses. A
small mom-and-pop shop run by two people, a medium-sized business, or even a Fortune 500
partnership are examples of such organizations. According to Chirapanda (2019), familyowned businesses account for 60% of all employment in the United States, 78% of all new
positions, and 65% of all wages paid.
According to Ibrahim and Lam 2021, the majority of Brazil's family businesses are small and
only 15% are large. Despite a slowdown in 2020, Brazil's economy has grown faster than the
UK's, so this is likely to change. However, family-owned businesses employ 9.2 million
people, make £1.1 trillion (€1.31 trillion) in annual revenue, and they make up two out of every
three private sector businesses in the UK. Despite one of the worst recessions ever recorded,
the family business sector's revenues have increased by 6% since 2007 (Zellweger, Nason,
2018).