Some people think that the best way to run business is within the family. What are the advantages and disadvantages of a family run business?

Some hold the opinion that when a

business

is exclusively run by family

members

, the best results will be achieved. Family-run

businesses

have several merits, including a more cordial atmosphere in the working

environment

and the fact that,

due to

family relationships, more trustworthiness, loyalty, and dedication can be observed in

employees

. On the one hand, several advantages are associated with a

business

operated by family

members

.

Firstly

,

due to

family bonds and the sense of affection, intimacy, and closeness that usually exist among family

members

, family-run

businesses

often have a relaxing and convivial atmosphere in the workplace.

Thus

,

this

comparatively stress-free and genial working

environment

can enhance the

employees

' productivity and efficiency, leading the

business

to thrive.

Secondly

, when a family runs a

business

together, they are more likely to dedicate themselves to

work

, using all of their capacities, skills, and abilities to operate the

business

as perfectly as possible.

Moreover

, it is undeniable that family

members

can be trusted more and show loyalty regarding

business

affairs,

for example

, by not revealing sensitive information or secrets of the

business

.

On the other hand

, several negative features are attributed to family

businesses

.

Firstly

, nepotistic behaviour and favouritism are more likely to be observed in

businesses

operated mainly by family

members

.

In other words

, non-family

employees

in these

businesses

may be treated unfairly, and perks and promotions may be given based on family relationships rather than competence and diligence.

Secondly

, family-run companies are more prone to some issues,

such

as the lack of adequate discipline in the workplace

due to

the informal working

environment

and intimacy between family

members

.

Hence

, when a

business

is managed by family

members

, they may not carry out the

work

earnestly and diligently as much as when they

work

in non-family

businesses

, leading to a decline in productivity and quality of

work

. In conclusion, family-run

businesses

have several positive features,

such

as having a more friendly and relaxing working

environment

and more loyal and devoted

employees

that can be trusted more

due to

family relationships.

However

, several downsides are

also

associated with these

businesses

, including the possibility of showing nepotistic behaviour towards family within the workplace and the lack of discipline and order in the relatively informal working

environment

of these

businesses

.