Implementing a working succession plan for Makoni Shopping Centre

Abstract

Building a resilient organization is essential for achieving continuity in business across generations; however, this is not easily accomplished. Therefore, a model for implementing successful succession and financial planning was developed. The objective of the study was to examine the factors affecting small business continuity from the perspective of succession planning and financial management among Zimbabwean SMEs, using the case of Makoni Shopping Centre in Chitungwiza. The specific objectives were to investigate succession planning and financial best practices in SMEs; analyse the challenges faced by SMEs in succession and financial planning; ascertain sustainable solutions to enhance successful succession and financial planning; and develop a comprehensive framework for SMEs to improve their succession and financial planning efforts. A quantitative research design was utilized, targeting a population of 300 SMEs at Makoni Shopping Centre. A sample size of 171 SMEs, both formal and informal, was selected, with 159 responding to the survey. The research was conducted in the context of Zimbabwean SMEs in Chitungwiza, chosen because it is the largest dormitory town in Zimbabwe. Data were collected through a survey method, and implementation interviews were conducted to assist the SMEs. The data were analysed using SPSS. The findings indicated that less than 50 percent of companies adhere strictly to succession and financial planning. The study concluded that poor communication can lower morale and complicate the management of financial risks associated with transitions. New leaders must navigate existing business cultures while ensuring that departing leaders convey critical expertise. A clear succession plan aligned with long-term organizational strategies is crucial, and involving all stakeholders is vital for fostering commitment and ownership in the succession process. Additionally, there is a need to develop contingency plans to address unforeseen challenges during transitions. Recommendations were made emphasizing the need for significant efforts in mentoring and the establishment of policies that support sustainability, ensuring a better future for these companies