A Dissertation submitted in Partial fulfillment of the requirements for the
degree of Master of Business Administration Corporate Management MBA CM
of the Mzumbe University
The study is based on the respective assessment of the relationship which exists between
succession plan and survival of the family-owned business which exist in Dar es salaam
Tanzania. The objectives of this study were to assess the relationship between characteristics
of family-owned business and related survival of business in Dar es salaam, to examine the
relationship between succession plan characteristics in family-owned business and survival
of business in Dar es salaam and to investigate the relationship which exists between success
plan in a family-owned business and its related business survival in the second generation and
third generation. The sample for data collection for this study was 76 family-owned business
selected based on the reliability of information obtained. This study used both qualitative and
numerical data from the field. Samples were selected randomly based on their importance,
which included business owners of 76 business entities in Kinondoni municipality. Data
tools involved in this study especially questionnaire, interview, documentary reviews and
observation were used and the collected data was analyzed using a computer program called
IBM SPSS.
It was found out that there are related direct relationship which exists between succession
planning and survival of the business as backed up with data survey based on age,
experience in terms of years worked and source of capital for the financing of the business. All
these factors contribute to the building of the foundation of strong business which can survive
for the second and third generation. The study recommends stakeholders including the
government, donors and even non-governmental organizations to promote family-owned
business through education and training. In which the owners can get clear knowledge on
the related importance of planning which is adequately required for the future use of
the business.
The understanding of how succession plan is prepared and implemented will lead to the
strengthening of family-owned business which ensures the government constant income
from taxes which is basic for the nation developmental plans. Education and training for
family-owned business owners are necessary to apprehend the types of business practices and
how they are conducted to the well-being of a family owned business.