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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Family businesses are quite popular in many countries.
While
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some people believe that they have a higher chance of success others argue that
this
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method will lead to many problems in the future. In my opinion, family businesses have certain pros and cons which will be discussed in the following paragraphs. Integrity and profound loyalty are the major advantages of running a family
business
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. The family
members
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will always stay together during any ups and downs of their
business
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rather than quitting
from
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apply
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the existing
business
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during the non-profitable stage.
In addition
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to that, the young generation born in
the
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a
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business
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family is more familiar with
the
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apply
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planning, human resources management, sales management, and financial management.
Therefore
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, they are capable enough of running the
business
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in any circumstance. All the
members
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will always work hand in hand for a common goal. The
business
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profit and losses are distributed among the family
members
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according to
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stipulated terms and conditions.
Conversely
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, the family-owned
business
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is not always successful, because there are many disputes related to profit sharing, outside recruitment, and
discussion making
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discussion-making
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involved in
this
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.
For instance
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, the young generation is more likely to be irresponsible and immature. Sometimes family
members
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are not truly interested in joining the family
business
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but do so anyway because it is expected of them. The result is apathetic, unengaged employees.
To conclude
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, a well-defined family-owned
business
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will thrive for a long period.
However
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, the family that runs their own
business
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must ensure that disagreements between family
members
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are resolved before they turn into a
business
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crisis.
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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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