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 world, the businesses are owned and run by the families. Its usual contributors include close relatives who manage the resources and finances of the organisation. There are multiple benefits and drawbacks of running a family owned business venture.
On the one hand, family run firms have the benefits of higher levels of trust and loyalty from the relatives.
For instance
- in times of recession, close relatives and friends are highly likely to stick together and face the difficult situations supporting each other. Linking Words
Also
, the relatives show higher levels of commitment to achieve the common goals of the organisation. Linking Words
For example
- family members can easily make sacrifices for the betterment of the company. Linking Words
Thus
, kinsmen help to create an environment of flexibility and loyalty for the firm.
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On the other hand
, there are several disadvantages of working in Linking Words
such
firm. When the personal distances arise between the family members, the businesses get negatively affected by it as well. One very common point of conflict is succession. Linking Words
For example
- siblings may have difference on the point of being the successor of the enterprise which can result in the splitting of the empire. Another point of conflict could be the referral of an incompetent relative to a higher position. Linking Words
This
can make hard working employees of the company to feel neglected. Linking Words
For example
- no one can deny the fact that the hard working and loyal employee of the company may leave if they feel there is partiality going on in the enterprise.
To conclude, the family run empires enjoy the benefits of greater loyalty, trust, and commitment etc., but there are high possibilities of negatives Linking Words
such
as favouritism and heredity which can make the environment of the organisation gloomy.Linking Words
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