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?

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It is thought by some that running a
business
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within the family is the most appropriate way to do it. It allows for partners to be closer to each other and ensures continuity down the generation, but there are
also
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drawbacks to these benefits that should be taken into account. On the one hand, doing
business
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with relatives comes with a lot of benefits.
Firstly
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, the
business
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partners will always be people that have known one another for a very long time and,
therefore
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, they consider themselves loyal to the enterprise.
This
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removes the benefits of doubt that might have occurred when dealing with a stranger.
Secondly
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, it is
also
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easier to source for money for the company, as a large number of people are involved. Members of the family contribute their quota to the
business
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development.
Finally
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, many families, strive so hard not to allow their
business
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to die and
this
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is a very good part of doing a family
business
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.
On the other hand
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, there are
also
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demerits of trading with family. One demerit is the lack of proper organizational structure.
In other words
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, the numerous numbers of people involved makes management uneasy.
In addition
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to
this
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, the people at the helm of administrative affairs may not be qualified for
such
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positions, they might have been chosen based on their old age.
Furthermore
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, large numbers of people involved in the
business
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could mean that arguments would be bound to occur.
Hence
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, decision making will not be as quick as possible because each member of the family is a stakeholder. In conclusion, despite the merits of doing family with
business
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, the fact that decision making is slow and some family members may be in serious should
also
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be considered.

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Linking words for giving examples:

  • for example
  • for instance
  • to illustrate this
  • to give a clear example
  • such as
  • namely
  • to illustrate
  • take, for example

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Topic Vocabulary:
  • loyalty
  • trust
  • communication
  • generational knowledge
  • long-term outlook
  • family traditions
  • stability
  • cost-effective
  • flexible payment arrangements
  • conflict
  • tensions
  • roles
  • diversity
  • external perspectives
  • innovation
  • adaptation
  • succession planning
  • instability
  • leadership
  • ownership
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