Family-owned businesses help drive both local and global economies. However, while employing family ensures that staff members are loyal and committed, it also has a number of drawbacks. (6 – 6. 5 introduction)
The most significant benefit of running a family business is having members of staff that are more committed to the company than in non-family firms. As the overall needs of the family depend on the success of the business, employees are willing to sacrifice time and money to achieve this common goal. This is probably most evident when a firm is in its initial stages, with relatives being willing to work long hours for little or no pay. Another positive is the pre-existing trust between family members. Long-standing relationships mean the confidential information can be discussed freely and, managers are more likely to delegate tasks. Moreover, in difficult times, siblings, parents, or children can offer emotional support by giving advice.
On the other hand, there are also disadvantages to working with family. When relatives are also colleagues, the line between home and work becomes blurred. As a result, people are more likely to overwork or bring their jobs home with them. Even worse, when professional conflicts arise in the office, it can be almost impossible for these not to spill over into personal relationships. Take, for example, the situation where a husband has to discipline a wife for poor workplace conduct, or a father has to sack a daughter. In both circumstances, life at home would become strained because of work. In fact, even small day-to-day conflicts, which are inevitable in any busy enterprise, could affect family dynamics, and this could be a high price to pay for many couples or relatives.
To conclude, while family-run businesses benefit from employees with a personal investment in the company, they also have to deal with the downsides connected to the separation of work life and home life. Therefore, relatives should think carefully before setting up a family-owned operation.
Family-
owned
businesses
help
drive both local and global economies.
However
, while employing
family
ensures that staff members are loyal and committed, it
also
has a number of drawbacks. (6 – 6. 5 introduction)
The most significant benefit of running a
family
business
is having members of staff that are more committed to the
company
than in non-family firms. As the
overall
needs of the
family
depend on the success of the
business
, employees are willing to sacrifice time and money to achieve this common goal. This is
probably
most evident when a firm is in its initial stages, with relatives being willing to
work
long hours for
little
or no pay. Another
positive
is the pre-existing trust between
family
members. Long-standing relationships mean the confidential information can
be discussed
freely
and, managers are more likely to delegate tasks.
Moreover
, in difficult times, siblings, parents, or children can offer emotional support by giving advice.
On the other hand
, there are
also
disadvantages to working with
family
. When relatives are
also
colleagues, the line between home and
work
becomes blurred.
As a result
,
people
are more likely to overwork or bring their jobs home with them. Even worse, when professional conflicts arise in the office, it can be almost impossible for these not to spill over into personal relationships. Take,
for example
, the situation where a husband
has to
discipline a wife for poor workplace conduct, or a father
has to
sack a daughter. In both circumstances, life at home would become strained
because
of
work
. In fact, even
small
day-to-day conflicts, which are inevitable in any busy enterprise, could affect
family
dynamics, and this could be a high price to pay for
many
couples or relatives.
To conclude
, while family-run
businesses
benefit from employees with a personal investment in the
company
, they
also
have to
deal with the downsides connected to the separation of
work
life and home life.
Therefore
, relatives should
think
carefully
before
setting up a family-
owned
operation.