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VOL. 2, ISSUE 3 (2026)
How ownership structure influences enterprise performance and survival: Evidence from family vs non-family SMEs in south-east Nigeria
Authors
Dr. Olachi Chuks Ronnie, Dr. Igatta Evangeline Amaka, Dr. Onodugo Chinwe Felicia, Dr. Igatta Thomas Ogbonna
Abstract
This study examined
the influence of ownership structure on enterprise performance and survival
among family and non-family small and medium-sized enterprises (SMEs) in
South-East Nigeria. Specifically, it investigated differences in financial and
growth performance, enterprise survival, the mediating role of access to finance,
and the moderating effect of insecurity exposure. The study utilized data from
700 SMEs drawn from Abia, Anambra, Ebonyi, Enugu, and Imo States, comprising
280 family-owned enterprises and 420 non-family enterprises. Enterprise
performance was assessed using return on assets (ROA), sales growth, and
employee growth, while survival was evaluated using business status and
survival years. Managerial professionalism, access to finance, decision-making
speed, insecurity exposure, startup capital, and market access were
incorporated as explanatory, mediating, moderating, and control variables. The
findings revealed a distinct performance-survival trade-off between the two
ownership structures. Non-family SMEs recorded significantly higher mean ROA
(14.8% versus 10.4%), sales growth (10.2% versus 6.1%), and employee growth
(7.1% versus 4.2%) than family businesses (p < .001). Conversely, family
enterprises demonstrated superior longevity, averaging 9.3 survival years
compared with 6.5 years among non-family enterprises, alongside a lower closure
rate of 8.9% compared with 16.4%. Survival analysis indicated that family
ownership was associated with substantially stronger survival prospects (Cox HR
= 0.57). Access to finance mediated approximately 45% of the relationship
between ownership structure and ROA, highlighting financing disparities as an
important mechanism underlying performance differences. Furthermore, high
insecurity exposure reduced the performance gap between family and non-family
enterprises by approximately 38%. The study concludes that non-family ownership
provides advantages in growth and financial performance, whereas family
ownership offers resilience and longevity under uncertain operating conditions.
Policies promoting professional management, improved SME financing, succession
planning, and security-sensitive enterprise support are therefore recommended.
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Pages:34-40
How to cite this article:
Dr. Olachi Chuks Ronnie, Dr. Igatta Evangeline Amaka, Dr. Onodugo Chinwe Felicia, Dr. Igatta Thomas Ogbonna "How ownership structure influences enterprise performance and survival: Evidence from family vs non-family SMEs in south-east Nigeria". World Journal of Research in All Subject, Vol 2, Issue 3, 2026, Pages 34-40
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