Corporate governance structures in family-owned businesses in Botswana

Résumé

This study examines the corporate governance frameworks of family-owned enterprises in Botswana. Family enterprises constitute a fundamental component of the nation's private sector, accounting for over 70% of GDP and providing employment for approximately 60% of the labour force. Notwithstanding their economic significance, these firms encounter ongoing issues in governance, especially concerning leadership succession, board composition, and professionalisation. This study utilises agency theory, stewardship theory, and the resource-based view, employing a mixed-methods strategy that includes the distribution of 150 structured questionnaires across several sectors such as retail, agriculture, hospitality, and professional services. The results indicate that companies with formal governance frameworks, including independent professional boards, written succession plans, and family protocols, consistently excel in strategic decision-making, transparency, and long-term sustainability compared to their competitors. Nonetheless, obstacles to implementation persist, since numerous enterprises are impeded by cultural opposition to non-family leadership, insufficient understanding of governance mechanisms, and a tendency towards informal decision-making. The article finishes by providing pragmatic ideas for policymakers, entrepreneurs, and development agencies to enhance resilience and competitiveness in this crucial industry.

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