SUCCESSION PLANNING, MANAGEMENT DEVELOPMENT AND BUSINESS LONGEVITY OF SMALL & MEDIUM ENTERPRISES (SMES) IN PLATEAU STATE
- Succession Planning,
- Management Development,
- Business Longevity,
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Small and Medium Enterprises (SMEs) are critical to the development of any economy - job creation, contribution to Gross Domestic Product, and its role in the welfare of an economy, among other factors. Despite its importance and positive economic impact, SMEs rarely live beyond the first generation. Recent studies have reported a decline in the number of SMEs, especially in Plateau State. This study investigates the role of succession planning and management development on business longevity of SMEs in Plateau State. Using a sample of 313 SMEs and Partial Least Square Structural Equation Method (PLS-SEM), the study found a significant positive relationship between succession planning and business longevity. Furthermore, the study found that management development mediates the relationship between succession planning and business longevity of SMEs. Based on the results of the study, succession planning contributes to business longevity of SMEs in Plateau State, while management development enhances the positive relationship between succession planning and business longevity of SMEs in Plateau State. The implication is that business owners should have a succession plan in line with management development to ensure continuity and sustainability. SMEs owners should propose successors on time to necessitate gradual development of the candidate for optimal business survival through several generations.