Family run businesses are believed to be the most successful ones. Early exposure will be advantageous in the development of the skills needed in the business, while it will be disadvantageous for an individual to run the business, with a lack of passion.
The main advantage of running a business within the family is the exposure to the demands of the business at a young age, which will aid in the development of the necessary skill-sets by the time an individual is ready to run the business. In other words, the element of surprise that comes with other entrepreneurial jobs is lost, in case of a family run business. Therefore, the expense of training is reduced which in turn spikes the business' productivity. To illustrate, a recent study in Business weekly reported that family run businesses showed a 34% reduction in the overall expenditure for training costs compared to other businesses, because of the early work-exposure prevalent in them.
On the other hand, some individuals may find that they are not passionate about running the business, which can become very suffocating. Lack of motivation can have disastrous effects on the individual and on the business. For example, a large proportion of young entrepreneurs have reported facing a burn-out because of their lack of passion. Dealing with a burn-out causes mental stress and increases the feeling of worthlessness in young people. This happens because not everybody in the family can have the same drive and the same vision for the future of the business.
To conclude, though family businesses are believed to be successful, it has its own share of highs and lows. Early work exposure can be great but the increasing amount of people feeling they can't escape the inevitability of joining the business is detrimental.
Family
run
businesses
are believed
to be the most successful ones. Early exposure will be advantageous in the development of the
skills
needed in the
business
, while it will be disadvantageous for an
individual
to
run
the
business
, with a lack of passion.
The main advantage of running a
business
within the
family
is the exposure to the demands of the
business
at a young age, which will aid in the development of the necessary
skill
-sets by the time an
individual
is ready to
run
the
business
. In
other
words, the element of surprise that
comes
with
other
entrepreneurial jobs
is lost
, in case of a
family
run
business
.
Therefore
, the expense of training is
reduced
which in turn spikes the business' productivity. To illustrate, a recent study in
Business
weekly reported that
family
run
businesses
showed
a 34% reduction in the
overall
expenditure for training costs compared to
other
businesses
,
because
of the early work-exposure prevalent in them.
On the
other
hand,
some
individuals
may find that they are not passionate about running the
business
, which can become
very
suffocating. Lack of motivation can have disastrous effects on the
individual
and on the
business
.
For example
, a large proportion of young entrepreneurs have reported facing a burn-out
because
of their lack of passion. Dealing with a burn-out causes mental
stress
and increases the feeling of worthlessness in young
people
. This happens
because
not everybody in the
family
can have the same drive and the same vision for the future of the business.
To conclude
, though
family
businesses
are believed
to be successful, it has its
own
share of highs and lows. Early work exposure can be great
but
the increasing amount of
people
feeling they can't escape the inevitability of joining the
business
is detrimental.