Impact of Heir Preparation on Leadership Succession Planning in Family Owned Businesses in Malawi

This study examines the impact of heir preparation on leadership succession planning in family owned businesses in Malawi, specifically within the retail trade and real estate sectors. Utilizing a mixed research design employing both quantitative and qualitative research design, data were collected from 120 respondents through structured questionnaires and 40 respondents using interview guides. The study focused on key heir preparation elements including formal education, mentorship, and involvement in strategic business activities. Statistical analyses, including correlation and regression, revealed a significant positive relationship between the level of heir preparation and the effectiveness of leadership succession planning. The findings underscore the importance of structured heir development in ensuring continuity and sustainability in family enterprises. The study contributes to succession planning literature by offering sector-specific insights and practical recommendations for family businesses and policymakers in Malawi.