Complete 9 page APA formatted essay: Issues in Family business.
A family business is different from a traditional business because the business stakeholders are related to each other unlike the conventional business where stakeholders are individuals and not related by blood. Secondly, in a family business there are three primary roles and they are family, ownership and business. The family means relationships, i.e. mom, dad, son etc, ownership means who owns the business (who are the primary stockholders) and business means people who work at the business. Since, the business is tied together with more than just professional attitudes the day to day functioning of the business is not as easy as it seems.
Conflicts occur more in family businesses as compared to the traditional business and these conflicts are extremely hard to resolve especially if there are close blood relations (Family Business Conflict Resolution). With emotions playing a vital role in decision making, not everything is simple as it may seem. While traditional business success can be judged by a lot factors which include use of technology, level and capability of resources, growth opportunities, using electronic commerce for business, customer satisfaction, customer retention and the company’s market share (Top 7 critical Business Success Factors 2000). Family business can only be judged using special factors that take into consideration the dynamics of the family business.
One of the most important factors in accessing the success of a family business is to determine whether work boundaries are specified or not. For the smooth running of a business it is necessary that the roles of individuals are well defined and communicated (Essentials for Family Business Success). In a family business it is easy that roles may often be neglected or might not even be defined. In such situations a single person gets overburdened with work while the others simply remain absent from work.