discuss the advantages and disadvantages of Family Businesses in gerenal

There is likely to be preference for equal sharing of power , which can delay decisions during a deadlock (Sonfield Lussier 2009 . Problems with leadership can also relate to succession There may not be good leaders in the family but there is preference for family members to lead the business (Fleming 2000

The last disadvantage is difficulties in achieving efficiency and profitability because of the preference for equity to the detriment of efficiency (Lee 2004 . The placement of unknowledgeable and inexperienced family members in key positions instead of hiring external experts to take

charge , while the family member gains experience , can lead to irrational or rash decisions that affect the performance of the business (Fleming 2000 . Similar situations focusing solely on equity can result to inefficiency that has a direct adverse effect on profitability

Conclusion

Family businesses have advantages and disadvantages . The family business , as a form of business organisation , suits today 's business environment through the advantages that are inherent or prominent in family owned or managed firms such as commitment , flexibility , control long-term planning , and employee motivation . Addressing the disadvantages can be by finding the strategic balance between family and business concerns or interests that work for the business at present and in the future . In doing so , family businesses can ensure sustainability even in the fast-paced business environment

References

Fleming , Q (2000 ) Keep the Family Baggage Out of the Family Business Avoiding the Seven Deadly Sins That Destroy Family Businesses . New York Simon Schuster

Leach ,

Bogod , T (1999 ) Guide to the Family Business . London : Kogan Page Limited

Lee , J (2004 ) `The Effects of Family Ownership and Management on Firm Performance . SAM Advanced Management Journal 69 (4 , 46-53 Leenders , M Waarts , E (2001 . Competitiveness of Family Businesses Distinguishing Family Orientation and Business Orientation . ERIM Report Series Research in...