South African family businesses have long reported high growth ambition alongside a persistent, largely unfixed weak spot: succession planning, with only a small minority ever formalising and actually implementing a plan for handing the business to the next generation.
Ambitious, but structurally exposed
PwC’s own family business research from 2016 found the vast majority of South African family firms expecting growth over the following five years, well above the global average for similarly aggressive growth expectations. That optimism sat alongside a persistent gap: fewer than one in five had a succession plan that had actually been discussed and implemented, not just discussed in principle.
Why succession remains the sector’s hardest problem
As a family business ages, the number of potential successors grows and so does the potential for conflict, yet the share of businesses with a genuinely implemented succession plan has stayed stubbornly low across multiple years of research. Mechanisms like shareholder agreements, family councils and formal constitutions help manage conflict once it arises, but they don’t substitute for the harder work of actually agreeing on who takes over and when.
Digital transformation and governance lag too
Family businesses have historically recognised the need to digitise without necessarily having a realistic plan for measuring the return on that investment, a gap that widens the longer it’s left unaddressed. Governance frameworks built for large public companies, like the King Code, are also frequently seen by family firms as too complex or poorly suited to a smaller, family-run structure, even when the underlying principles would genuinely help.
Frequently asked questions
What is the biggest structural weakness in South African family businesses?
Succession planning, historically fewer than one in five family businesses have a plan that’s actually been discussed and implemented, not just considered.
Are South African family businesses generally growth-ambitious?
Yes, research has consistently found high growth expectations, often exceeding global averages for aggressive growth ambition.
Why does succession planning remain difficult for family businesses?
As a business ages, more potential successors emerge, increasing the potential for conflict, which often delays the harder conversations about who takes over.
Do family businesses generally have a good handle on digital transformation?
Historically not fully; many recognise the need to digitise but lack a realistic plan for measuring the actual return on that investment.
Why do family businesses sometimes resist formal governance codes?
Frameworks like the King Code are often seen as too complex or built for large public companies rather than smaller family-run structures.
Originally published in November 2016. Updated September 2026.
Corporate governance context via the Companies and Intellectual Property Commission.
Further reading
Originally published in November 2016. Updated September 2026 to confirm succession planning remains South African family businesses’ most persistent weak spot, and link current guidance for actually implementing a plan rather than just discussing one.
