Many business in the world today are run by family members. Do the advantages of family-run business outweigh the disadvantages?

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In the modern world, there are several forms of business. A large number of today's
businesses
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are run by family
members
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.
Although
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family-run
businesses
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can avoid a breach of confidentiality, in my opinion, the downside of it greatly outweighs its upside because
companies
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eventually face a lack of creativity. On the one hand, one of the positives of family-run
businesses
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is that
companies
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can keep secrets.
This
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is because family
members
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will not cheat each other, and they can make an effort to flourish their
businesses
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in cooperation .
For instance
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, in many Southeast countries
such
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as Malaysia, Singapore, and Indonesia, people often establish family-run
businesses
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to avoid their employees betraying them.
However
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, I do not think
this
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could be the primary upside of family-run
businesses
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overwhelmed their downside since
this
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kind of cheating can be prevented if people make an agreement when they hire someone.
On the other hand
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, one of the drawbacks of
this
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type of business is the shortage of creativity and innovations. The major reason for
this
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is that family
members
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are alike in thinking ways.
Therefore
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, they hardly come up with something new unless they take in them from hiring someone else.
For instance
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, in Japan, real estate films are mostly family-run
businesses
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, and they cannot beat foreign capital
companies
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due to the lack of ideas. I agree with
this
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point of view because films' major achievement is to gain more profits. To conclude, even though
businesses
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will not suffer from a breach of confidentiality if they are conducted by family
members
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because family
members
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can work hard and barely cheat family
members
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, I believe that the negatives of family-run
businesses
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greatly overwhelm the upside as
companies
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cannot innovate something new to gain more profits without hiring someone other than their family
members
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.
Submitted by u6u2sg29 on

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Topic Vocabulary:
  • trust and loyalty
  • long-term interest
  • benefit future generations
  • efficiency and flexibility
  • common goals
  • reduced costs
  • personal conflicts
  • decision-making paralysis
  • operational challenges
  • lack of professionalism
  • necessary skills
  • succession problems
  • transitioning leadership
  • power struggles
  • disagreements
  • sustainability
  • limited network
  • professional network
  • growth opportunities
  • non-family-run businesses
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