Family business: pros and cons

[Ayuba Ernest]

Family businesses have been around for hundreds of years, and there are many examples of them that are successful. However, there are also a significant number of unsuccessful family businesses. The following is a list of some of the advantages and disadvantages of running a family business:


Pros:


1. The likelihood of a family business's success is significantly higher than that of a non-family business. This is due to the fact that family-owned businesses typically have a stronger sense of work ethic and are more loyal to both their customers and their employees.


2. Businesses owned by a family can be passed down from one generation to the next, which can provide a sense of continuity and safety for the family as a whole.


3. There is less hierarchy in family businesses, which means that family businesses have better decision making strategies.


Cons:


1. Because of the loyalty factors, it may be less transparent than other options.


2. It is possible for there to be disagreements, which can result in chaos and low business productivity.


3. It is possible for a company to fail if there is inadequate or no funding.

 

[anil02]

In my country joining family business in tradition. It is not easy to set up a business it will take long time. some years. So it is must for one or two members of family to join family business. Nothing wrong in it. If some one have problem with family business than it is not tough to solve these. Loyalty of old business house always pay to us.

 

[btaliat]

In most cultures like that of Indian, it is imperative on the children or any family member to take over family business. This is to build there dynasty. As much as I like this culture, I don't really support family business or some instances.

The feud that does exist among family members in the course of succession to the throne of the maim figure in the organisation makes me have some mixed feelings about the situation. I recently watched a film where a brother has to kill his brother just to assume power of the manager in their late father company.

Aside the feud that does exist, family business tends to limit individual. Imagine someone that hates construction business but may have less option because that's the family business. Some people have lost themselves just because they want to save their family business. Most of them will make sure they forfeit their dreams for family own.

The last thing is that tranfering ownership doesn't guarantee tranfering success. There are some instances where the son won't be as good as his father. This will always cause the organization to be losing customers and in the long run may lead to the collapse of the business.

 

[anil02]

Film is film not real life, India in India many brothers are doing family business. I am also not agree with it that family business limits the imagine of some one. If some one have not interest in type of family business they can add any new business. It is not easy to start and set a new business.