There are several reasons why running a business with one’s own family members is advantageous. One of them is a strong sense of unity. It is instinctive that all family members demonstrate, share core values to the firm and go along well with each other. That is why they often have a tendency to work hard together to reach the stated goals and make their privately held family firm more successful. Secondly, family-controlled firms are often associated with greater stability in terms of employment, regardless of the economic cycle. The family members share a level of persistent commitment and engagement to the company. A family-run business also is less likely to fire employees during economic downturns. Hence, it can be assumed that family firms generally tend to keep employment levels stable and avoid downsizing. Last but not least, another advantage is decreasing cost and expenditures. Because of their blood relationship, these company members may be more willing to make financial sacrifices for the sake of the business. For instance, they may be enthusiastic about offering their wages to protect their socioemotional wealth. Briefly stated, these advantages can create an extra sense of purpose and a competitive edge for the business.
There are several reasons why running a
business
with one’s
own
family
members
is advantageous. One of them is a strong sense of unity. It is instinctive that all
family
members
demonstrate, share core values to the
firm
and go along well with each other.
That is
why they
often
have a tendency to work
hard
together to reach the stated goals and
make
their
privately
held
family
firm
more successful.
Secondly
, family-controlled
firms
are
often
associated with greater stability in terms of employment, regardless of the economic cycle. The
family
members
share a level of persistent commitment and engagement to the
company
. A family-run
business
also
is less likely to fire employees during economic downturns.
Hence
, it can
be assumed
that
family
firms
generally
tend to
keep
employment levels stable and avoid downsizing. Last
but
not least, another advantage is decreasing cost and expenditures.
Because
of their blood relationship, these
company
members
may be more willing to
make
financial sacrifices for the sake of the
business
.
For instance
, they may be enthusiastic about offering their wages to protect their
socioemotional
wealth.
Briefly
stated, these advantages can create an extra sense of purpose and a competitive edge for the
business
.