Problems In Family Business Essay

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Issues And Problems In Family Business
As in most family businesses stakes are high, it is difficult to hand it over to non-business employees. While the first generation needs to accept this the second generation should learn to appreciate their parents generation and their wisdom and should also understand that there is no alternative for hard work. There is always lack of professionalism involved, conflicts and mismanagements in family owned businesses. There is a famous saying that is very true and accepted : “the first generation builds, the second generation makes it stronger and the third generation mostly destroys all the business”. The longevity in family business is an objective that is difficult to achieve in any business. Thus each step a firm moves ahead is a challenge which they business firms accept wit true spirit. The greatest challenge the business firm is concerned with is the generation gap. The culture of present family owned business is inward looking, owner centric and have a conservative mindset and even have a restricted perspective. Too much involvement of the family members in the business affects business such as their responses to various opportunities and threats. Other problems that the firms get into are: conflicts and family norms, rivalry among family members, and also problems in continuity. These problems
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The objective is to keep the family and business together and running and it can be achieved through some policies related to conflict management and have a well succession plan made which shold be interwined with conflict management. There will be different succession plan for different family owned business and there is no single solution of conflict
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