Advantage Of Family Business

In the modern era, the controversy surrounding the issue of if family business is beneficial for the company to develop. This has risen to a prominence. There is clearly a conspicuous division of opinion, With some arguing that family business is disadvantageous for the cooperation whereas others contend that family business has enormous benefits for the development of business. According to my judgment, I assume that view that family business is disadvantageous for the development of a cooperation. Therefore, this paper will discuss a number of strengths and weaknesses about this issue. In addition, giving reader real examples to justify the the factors that make people think those two ways and demonstrating the perspective that family business

The central thrust of this perspective is simply that this can increase the stability of a company significantly. This is simply due to the fact that in a family business, the leader of a company usually rely on the position in their family which enable the leader of the company stay in a cooperation for many years. The research done by governor called Christophe Bernard indicate this case is common in many companies as it discovered that company that run by the family will be 50% more stable than the companies that not owned by a family. Therefore, personally, I this is one of the most valuable point of family business. Another common, though misguided thought of this is undoubtedly that family business enable family members think they have commitment and accountability to try their best in order to generate more profit for the company. This is simply due to the fact that people usually believe family numbers are more trustworthy and it is their obligation to improve their business. Recent survey was indicative of this assertion as it make a research which has direct connection of this. As it discovered that Hoshi Ryokan, a Japanese hotel keeping business founded in 718, which is one the oldest family business in the world has been running for 46 generations which due to the fact that people in this family is really responsible

There are several points in support of their opinion and I find this polemic to be deeply persuasive. The principal factor underlying this position is simply that family business will result in family conflicts. This is simply due to the fact that although every companies have conflicts, family business conflicts will have a long-lasting negative impact on the relationship between family members. Credible evidence bolster this and illustrate what kind of negative impact of conflicts in family business will cause. As it demonstrate that conflicts in a family-running business will long lasting 50 per cent more than an usual company. A further point that definitely lend weight to this perspective is that family business always will cause nepotism. This is simply because in a family-running firm, the leaders trend to apply their relatives to be the employees rather that apply some skillful and experienced people to do that job. This will make the employees be less loyal to the companies. In addition, some essential work can not be done quickly or correctly and this lead to the decrease of profit in a firm. Once again, real instance highlight this point, as a group of researchers do a report that relevant to this, as it discovered that 90 per cent of family business have the issue of dealing nepotism. Therefore, I hold this it to be axiomatic that this