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Advantages And Disadvantages Of Family Business

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Chapter 2: Review of Literature
2.0 Overview
This single feature results in a quantity of manipulation differences is the way in which family businesses manage succession from one generation to the next.A widely quote data recommends that 30% of these family firms survive into the next generation of family proprietorship, and only 15% of them survive into the third generation (Kets de Vries, 1993; Ward, 1987). This data shows that this 2nd and 3rd generation are unusually high ratio. This also means they should increase the percentage of survival in 2nd and 3rd generation. and yet, the factors that result in successful transforms are produce some experience and evidence.
The main reason of this study is to evaluate the family business to be …show more content…

As we know, the existence of the family business in market is longer than other non family firms and its talented business knowledge and thought richer than non family firms because the family firms may developed some specific knowledge in their life span which distinct with non family business ideas. The advantages of family business are strongly helping them survive in business. According to M. Duh and J. Belak (2009) stated that the strong integrity relationships among family business are the key to maintain the standard of the family business. The family members can commit their income to keep the family business running prevent from bankrupt in critical situation. In meanwhile, the family thought that highlighted in promotional materials may differentiate them from their competitors. Sometimes, the perception of tradition and achievement inherit from above can be useful to orientate the process of business including hiring of non family workers. The inheritance of family culture and values provide the long run thinking for family firms which they can speedy reflect the issues is arise refer the experiences of predecessors. another advantages of family businesses is their stability. Family owners tend to objective the long-term financial and human capital strategies than public companies, their stock market constraints obsession, at least from 1960 quarterly …show more content…

Business planning, succession planning, and financial planning are often viewed as an ineffective use of time instead of a necessary business process. As the business moves through the generations, the owners’ vision tends to get lost or blurred and the next generation of owners often find themselves without direction as they plan for the future. The dining room table often replaces the boardroom table, and whatever planning is done tends to be informal and

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