Disadvantages Of Family Business

980 Words4 Pages
In the wake of the development of society and economy, an increasing number of people tend to run their own business. There is a special kind of company called a family business. A family-owned business may be defined as the business which is run by two or more family members (INC). This kind of company is popular in China. The boss runs the company with his wife and his son or daughter can take charge of the company after their parents die. There is a serious debate on whether the family business is beneficial or not. This essay aims to illustrate the advantages and disadvantage of family business. First of all, family businesses have fewer layoffs, because their workers are seen as extended family members, however if one of the family members…show more content…
To be specific, the employee in the public only care about their own benefit, that means once the relationship is broken, they may seem to be inhuman. In addition, if the relationship is broken the result is cannot imagine Most businesses may only have shareholding relationship, it seems to be inhumane that people just work together to earn more money (David Milstead,2013) .Nonetheless, family company seems to have more warm relationships. However when it goes really bad you have a family breakdown, turning siblings or cousins against each other or, parents against their children. For example, if the there is a couple run the company, and they meet the challenge during the process that they are running the business, it is too difficult to overcome the problem. At the same time, they both have the different opinions to resolve this problem. They may quarrel with each other and their matrimony may break down. We can see the examples during our real life. Sun Hung Kai Properties is one of the largest real estate companies in Hong Kong, brothers Raymond runs this company for several years. However, the oldest brother, Walter, the person who had managed the company for 18 years left this company on February 2008 for personal reasons. In fact, he broke the relationship with the person who is the largest shareholder and the mother of the brothers in the company. Thus, this cause forced him…show more content…
Although it can make a more peaceful environment for the employees to work better and make the staff to have a more humanized. It can also create an unfair situation and bring the loss of the staff to the company (Burks 2010).Thus, we need to think about how to make the family business better. To train family business running in a healthy way, the way that can do is to make certain rules. What I mean is that employers should treat their employees and their relatives in the same way. Thus the boss’s relative should not have the privilege during work. And they will have the same treatment with other employees. If they do the wrong things, the boss should punish them seriously. It can make a fair environment and it is beneficial to both the development of the companies and staff. When it comes to the couple who run the company together, if they meet a problem during work, they should negotiate in a peaceful way. In case, they should distinguish the possess before they’re married to reduce the fighting to the company. Thus, when their relation is broke, there is no means that they will not work together. It will reduce the bad effect from the family
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