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Mattera Motors: Succession Planning in South Africa
This case focuses on a small family business, Mattera Motors, an auto repair shop operating in the challenging operating environment of a South African township. The founder, Marcello Mattera, started as a “necessity entrepreneur” (i.e., an individual pushed into launching their own business due to no other employment options). The business has nonetheless reached a level of stability over the past two decades and is successful by the standards of a township enterprise. However, the company faces dilemmas in the coming years relating to succession and growth. Specifically, should Mattera’s children inherit the business from him? Could the business survive if Mattera shared it between his two children? Or should the family expand the business to seize new opportunities?