Renowned business trainer and Chief Executive Officer (CEO) of B.C. Bencyn Limited, Benjamin Anyanah, has identified poor corporate governance as a key reason many businesses fail to survive after their founders pass away.
He emphasized that business owners often struggle to separate their personal identity and values from their companies, limiting the ability of these businesses to thrive independently.
“We are not able to separate our value system from the business, which is a complete entity,” he noted.
Speaking on A1 Radio, Mr. Anyanah observed that many entrepreneurs resist the concept of shared ownership, insisting on being recognized as sole proprietors rather than working collaboratively. This individualistic mindset, he argued, prevents businesses from becoming sustainable entities that can outlive their founders. He stressed that businesses should prioritize collective efforts and prepare for ongoing transitions as new people join and others leave.
“When it is ‘we,’ that is when it continues because it’s a continuous process—more people come in, some will pass away, and the whole thing goes on,” he explained. “We don’t think of adding external people to our business, and when people do come in, they want to neutralize that ‘me.’ They want to have the name.”
To build sustainable businesses, Mr. Anyanah suggested that companies establish strong structures to ensure smooth operations even when external investors come on board. However, he noted that company laws are not yet developed enough to fully support transitions, discouraging investors who fear their contributions could be diluted or mismanaged.
“I think it must be a process where, even at the enterprise level, you should be able to bring people into the business. We should have systems in place that ensure when people invest in your business, the system works,” he stated.
In his view, strong governance systems and legal frameworks are essential for businesses to outlive their founders. He proposed that governments enact more robust laws to support company growth and longevity, making it easier for investors to enter and exit businesses.
“Government should also institute strong laws that actually allow companies to thrive,” he said. “If those systems are in place, I believe businesses will be able to survive after the owner’s death.”
Additionally, he emphasized that when a business struggles, it is often not the company itself that is failing, but rather the individual leading it. He suggested that by removing ineffective leadership, appointing a professional receiver, and restructuring operations, struggling businesses can be revitalized and put on the path to success.
“When someone is running a company and it’s not performing well, it’s not the company that is failing—it is the individual. So you remove the individual, appoint a receiver to take over, go through the process, restructure it, and then the business moves forward,” he concluded.
Source: A1Radioonline.com | 101.1Mhz | Gifty Eyram Kudiabor | Bolgatanga
