Family-Owned Businesses

Family-Owned Businesses
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Family-Owned Businesses
A family-owned business is a profit-making organization managed, controlled, and run by family members related by blood, marriage, or adoption, and they make all the business decisions. The members have the power to influence the vision and mission of the business to achieve the set goals. Decision on whether to start a business with the family depends on the motivation to start a business, business insight and style of managing the business, characters of the family members involved, and the state of the company or market. This text will discuss all aspects of the family-owned business, including the positive and negative effects of family members and nonfamily members, leadership, motivation of work, management, the attitude of workers, and their impact on the business.
In real life, there are numerous successful family-owned businesses, which can be termed a positive impact. Working in a family business gives the family members self-confidence, comfort, and an encouraging environment since the people involved are people you know well, understand, trust and care about them. At the same time, it can be a complex environment for the family members. For example, suppose the business leader has a personal issue with one of the members. In that case, he or she will be less keen to listen and consider the business ideas of the named person, whether they are beneficial or not. This is because there is no fresh start in a family business. Working in a family business provides the members with a stress-free environment where they are free and comfortable (Dowding et al., 2021). This may lead to the members breaking the rules since they take advantage of family and suppress the desire for excellence and professionalism. Decision-making in a family-run busines...