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?

Family businesses are quite popular in many parts of the world. While some people believe that people who run private corporations have a higher chance of success, others argue that

this

method leads to many problems in the long run. In my opinion, family businesses have certain pros and cons which will be discussed in the following paragraphs. On the one hand, a crucial advantage behind firms run by families is the persistent commitment and involvement of the family

members

, which have a greater level of stability and loyalty attached to it. Everyone relies on others to ensure their own success without having the thoughts of being robbed or unfair competition. To put it another way,

members

would work together to achieve a common goal with more dedication and flexibility. In fact, most successful

business

ventures

such

as Walton’s and Ambani’s are family-run.

On the other hand

, with various models in trading nowadays, the noticeable downside of a family run

business

is a lack of expertise. Access to expertise is inevitable to the

business

, especially in the growth stage. The placement of family

members

in different positions without possessing the adequate skills required for the job would impose an additional burden on the entrepreneur because of the necessity to employ expertise.

Besides

, the

business

may confront problems like misappropriation of funds and sometimes there is an increased chance for disputes between the family

members

which would hinder the smooth functioning of an organisation. To conclude, there are both supporting and opposing arguments for a family

business

. Many experts believe that building an organization with a family helps keep the family together. With communication and understanding, a dispute in family entrepreneurship can be avoided.