Business Failure Among Igbo Entrepreneurs: The Role of Informal Structures and Succession Challenges

Paschal Chima Anyanwu; Blessing Oby Osuagwu; Nnaemeka Augustine Anichebe

doi:10.56201/jbae.vol.12.no4.2026.pg155.172

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Business Failure Among Igbo Entrepreneurs: The Role of Informal Structures and Succession Challenges

Paschal Chima Anyanwu, Blessing Oby Osuagwu, Nnaemeka Augustine Anichebe

Abstract

This study examines the determinants of business failure among Igbo entrepreneurs in South-East Nigeria, with particular emphasis on informal business structures, succession planning, and record-keeping practices. Despite the strong entrepreneurial culture and dominance of Igbo entrepreneurs in commercial activities, many businesses fail to survive beyond the founding generation. The study adopts a descriptive and explanatory research design, utilizing primary data collected from 300 respondents through structured questionnaires. Data were analyzed using correlation and multiple regression techniques. The findings reveal that informal business structures are highly prevalent and have a significant negative effect on business survival, while succession planning and record-keeping practices have significant positive effects on sustainability. The regression results indicate that the model explains 65.9% of the variation in business survival, highlighting the critical role of internal organizational factors. The study further establishes that record-keeping serves as a mediating mechanism, enhancing decision-making and financial management, while weak succession systems and informality contribute to structural inefficiencies. The study concludes that business failure among Igbo entrepreneurs is primarily driven by internal managerial and structural deficiencies rather than external environmental constraints. It recommends the formalization of business structures, implementation of structured succession planning, improvement in record-keeping systems, and capacity building for entrepreneurs. The study contributes to knowledge by developing an integrated framework linking informal structures, succession planning, and record-keeping to business sustainability within the context of indigenous entrepreneurship.

Keywords

Business failureIgbo entrepreneursinformal structuressuccession planningrecord- keepingSMEsNigeria

References

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Business Failure Among Igbo Entrepreneurs: The Role of Informal Structures and Succession Challenges

Abstract

Keywords

References

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