Risk Management in Family Business in Nigeria: Challenges and Strategies for Family Business Sustainability

Abstract

Family enterprises are the backbone of the Nigerian economy, providing substantial support to entrepreneurship, employment, and industrial development. Nevertheless, these businesses are subject to a range of complex risks from governance and succession issues to economic and environmental risks. Good risk management is vital for business survival, profit, and long-term viability. This paper explores the specific risks that are faced by Nigerian family businesses and propose means of reducing these risks. In this article, using synthesis of the latest research and applying a qualitative research methodology, the authors focus on governance risks, financial constraints, socio-cultural contexts, and external market interference. From the findings, it was recommended that family businesses should incorporate robust governance frameworks, diversified investment portfolios, structured succession planning, and technological integration to improve adaptability. Consequently, this work offers practical solutions for family business head, policy maker, and stakeholder to implement for the survival of resilient enterprises in Nigeria's fast changing economic landscape.