Family Business:Challanges And Opportunities
...or several families. Many companies, which were established as family businesses, are now publicly held. Numerous family businesses have non-family members as workforce, but, predominantly in smaller companies, the top positions are frequently allocated to family members.
Family partaking in a business can reinforce the business because family members are very reliable and devoted to the family enterprise. On the other hand managing a family business, and especially succession planning, can cause some unique problems. Frequently family interests clash with business interests, for instance hiring a family member who is less skilled than a non-family member or keeping a family member who performs less successfully in a position when their achievement is hurting the company. Psychologists are repeatedly consulted to assist families effectively manage issues that have an effect on both the family and the business. Some of the examples of family businesses are:
* Cargill
* Ford Motor Company
* Hilton Hotels Corp.
* SC Johnson Company
* Tetra Pak
Small businesses are very important to industrially developed nations as they make a significant contribution to the growth of the socio-economic and political infrastructure. Considerably, both in Britain and in the USA, family firms operating in conventional manufacturing and service sectors comprise a large percentage of the small business population as a whole.
2. SUMMARY
Being a small business owner, of almost any sort, is undoubtedly different from being an employee or from being a shareholder in a large business. On the contrary of large businesses, small firm owners have more inner certainty than large firm managers but more external uncertainty. Denise Fletcher argues that the addition of family, leads to added ‘tensions and contradictions’ because of the ‘social and emotional...
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