Some people think that the best way to run a business is within the family. What are the advantages and disadvantages of a family-run business?
In many parts of the worlds, there is the
business
which is run by the family. Although
there are some benefits associated with the family business
, there are also
some drawbacks to undertake it.
Firstly
, being the part of the family work can help family members understand the expectation among individuals. Clear communication and discussion can help to achieve family goals at a rapid pace. For instance
, almost the majority of big companies were started by the family member
, like Ambani’s and Walton’s. Secondly
, even during the bad times the family members stay together and run business
. On the contrary
, leaving the family business
in the middle of the path can lead to personal grudges among the family member
and the heritage of the family is vanished.
On the other hand
, the family business
can have many drawbacks when certain family member
has a lack of proper knowledge to run the business
. For instance
, business
of share brokerage should require in-depth knowledge of share market and financial situation of the companies, Lack of knowledge will result in the closure of venture, In addition
, personal grudges can also
lead to a difference of opinion in the family member
. For instance
, the rivalry between husband and wife can also
lead to the partition of the venture. Furthermore
, a lack of interest can lead to failure of joint business
.
To conclude, there are both supporting and opposing arguments for a family business
. Many experts believe that building an organization with family helps keep the family together. With communication and understanding, a dispute in family entrepreneurship can be avoided.Submitted by ravneet89.sidhu on
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