Short Essay On Family Business

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The phenomenon of the Family Business (FB) has received increasing attention of professionals and academicians in last few years. FB is recognized as the growth engine of the economy. In the aggregate, FB plays a significant role in providing highest employment and greater return on investment and considered as most sustainable business model throughout the globe. In broad-spectrum, the FB is dominated by SMEs and in particular by micro enterprises. While looking to India, FB is the lifeline of the economy though majority of Indian family firms are quite young in comparison to world history of family business. According to the CII’s Family Business Network (India chapter), the gross output of these family-run businesses accounts for 90 percentage of India’s industrial output, 79 percentage of organised private sector employment, and 27 percentage of overall employment, superseded only by the Government and Public Sector Undertakings. Although FB is vital to the Indian economy, little attention is paid to them. Despite their many…show more content…
Integrity is maintained well during the first generation. With the passage of time, the family and the business grow and various branches of the family live in separate home and sometimes even in different cities. The next generations of such family need to understand and maintain the values, mission, culture and integrity. For that what needs is to establish a formal system of communication among the second / third generation to discuss the family and business matters. The other main challenge of family owned business includes succession planning, communication, retaining non-family talent working in the business, role of women in the business and family and employment of family members in the business. While peeping into all these problems, one thing comes out as a key to conquer this issue which is governance of

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