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?

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Some hold the opinion that when a
business
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is exclusively run by family
members
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, the best results will be achieved. Family-run
businesses
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have several merits, including a more cordial atmosphere in the working
environment
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and the fact that,
due to
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family relationships, more trustworthiness, loyalty, and dedication can be observed in
employees
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. On the one hand, several advantages are associated with a
business
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operated by family
members
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.
Firstly
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,
due to
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family bonds and the sense of affection, intimacy, and closeness that usually exist among family
members
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, family-run
businesses
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often have a relaxing and convivial atmosphere in the workplace.
Thus
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,
this
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comparatively stress-free and genial working
environment
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can enhance the
employees
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' productivity and efficiency, leading the
business
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to thrive.
Secondly
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, when a family runs a
business
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together, they are more likely to dedicate themselves to
work
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, using all of their capacities, skills, and abilities to operate the
business
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as perfectly as possible.
Moreover
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, it is undeniable that family
members
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can be trusted more and show loyalty regarding
business
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affairs,
for example
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, by not revealing sensitive information or secrets of the
business
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.
On the other hand
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, several negative features are attributed to family
businesses
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.
Firstly
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, nepotistic behaviour and favouritism are more likely to be observed in
businesses
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operated mainly by family
members
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.
In other words
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, non-family
employees
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in these
businesses
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may be treated unfairly, and perks and promotions may be given based on family relationships rather than competence and diligence.
Secondly
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, family-run companies are more prone to some issues,
such
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as the lack of adequate discipline in the workplace
due to
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the informal working
environment
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and intimacy between family
members
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.
Hence
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, when a
business
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is managed by family
members
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, they may not carry out the
work
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earnestly and diligently as much as when they
work
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in non-family
businesses
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, leading to a decline in productivity and quality of
work
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. In conclusion, family-run
businesses
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have several positive features,
such
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as having a more friendly and relaxing working
environment
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and more loyal and devoted
employees
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that can be trusted more
due to
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family relationships.
However
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, several downsides are
also
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associated with these
businesses
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, 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
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of these
businesses
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.
Submitted by ghsa1214 on

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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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