An Examination of Nepotism Perceptions within Ugandan Family-Owned Enterprises

Abstract

While research exists on nepotism in Uganda, its specific prevalence and perception within family businesses remain understudied. This study aimed to bridge this gap by analyzing the perceptions of nepotism in Ugandan family-owned enterprises. A quantitative approach was employed using a modified, closed-ended questionnaire distributed online and via email. Drawn from prior literature, the questionnaire assessed perceptions of nepotism prevalence and its associated effects. Data from 400 respondents were analyzed using SPSS v26 and SmartPLS-SEM 4 software. Findings revealed that 64.3% of respondents acknowledged the existence of nepotism within their family businesses, while only 35.8% denied it. Interestingly, a majority (50.8%) viewed nepotism negatively, with only 7% favoring it. Furthermore, 63.3% of respondents reported personal experiences with nepotism, highlighting its pervasiveness. However, the frequency of nepotism practices varied, with 28.3% reporting that it never occurs, 21.5% rarely, 27.5% sometimes, 17.5% often, and 5.3% always. Notably, the high perceived prevalence (64.3%) was potentially linked to the absence of anti-nepotism policies, reported by 79.5% of respondents. The study underscores the significant challenge of mitigating nepotism in Ugandan family businesses due to its perceived normalcy and the lack of formal policies prohibiting it. To foster fairness and ensure equal opportunities for qualified individuals, family businesses in Uganda should prioritize professionalization and actively address nepotistic practices.