COVID-19 and Family-Owned Business Performance

Abstract

The study examined the impact (COVID-19) pandemic on family owned business (FOBs) in Southwest Nigeria. This study targeted a total population of 23,228 SMEs (SMEDAN, 2017) adopted for FOBs because most SMEs are FOBs in Nigeria. A sample size of three hundred and seventy eight 378 respondents from the total population constitutes the sample size for questionnaire that was administered. The determination of sample size for the study was achieved using the Raosoft sample size estimator. Out of the 378 questionnaire being distributed, only 250 were filled and returned appropriately. The study adopted multistage sampling technique. The focus of the study was based on fast moving consumable goods (FMCGs) producers of essential goods. The collected data was scored, tabulated, coded, and analyzed using multiple linear regression analysis with the aid of SPSS 23.0., the result reveals that there is a moderate significant relationship between COVID-19 pandemic and FOBs performance, where product patronage (r = 0.534, P< 0.01); growth (r= 0.623, P< 0.01), and profitability (r = 0.228, P< 0.01). Therefore, the study accepted the alternative hypothesis that there is a significant relationship exist between COVID-19 pandemic and FOBs performance. The study recommended that government should strengthen the business related incentive packages and circulate the information noticeably, this is indispensable in volatile potential of the Covid-19 pandemic predicament; FOBs should identify critical business issues and develop recovery strategy such as business recovery plan (BRP) to enable them mitigates the impact of covid-19 on their businesses; and opportunities should always tap from every situation by businesses. Keywords: COVID-19 Pandemic, FOBs Performance, Product Patronage, Growth, Profitability