It is true that family-run businesses have never stopped gaining in popularity over the world. Although this model is applauded by many experts, it still exists some limitations.
On the one hand, there are a number of advantages of family-run businesses. First, since the company is operated and overseen by family members, such as children and wife, or relatives, it is difficult for outside parties to steal the control of the business. This means that the family has an absolute control and power over strategic decisions, staffing or a payroll, which is of great benefits for all family members. Second, since family-run businesses are private corporations, they are not subject to complex financial complicating reporting requirements. As a result, the company can save a great deal of money on hiring a team of professional accountants to prepare external reports and deal with government stakeholders.
On the other hand, family-run businesses are not without disadvantages. In fact, conflicts related to business among family members have the potential to sabotage any family relationships. For instance, the dispute over either business owner or salaries might lead to a quarrel or even an avoidable family estrangement. In addition, non-family employees working for family-run business might see the way of running the company is not fair to them. For example, even if they perform exceptionally well and make enormous contributions to the company, chances are they will not be recognized enough compared to those who are family members.
In conclusion, given clear advantages that family-run business have, there are still some limitations. By acknowledging the limitations, the business owners can find the ways to dodge them.
It is true that family-run
businesses
have never
stopped
gaining in popularity over the world. Although this model
is applauded
by
many
experts, it
still
exists
some
limitations.
On the one hand, there are a number of advantages of family-run
businesses
.
First
, since the
company
is operated
and overseen by
family
members, such as children and wife, or relatives, it is difficult for outside parties to steal the control of the
business
. This means that the
family
has an absolute control and power over strategic decisions, staffing or a payroll, which is of great benefits for all
family
members. Second, since family-run
businesses
are private corporations, they are not subject to complex financial complicating reporting requirements.
As a result
, the
company
can save a great deal of money on hiring a team of professional accountants to prepare external reports and deal with
government
stakeholders.
On the other hand
, family-run
businesses
are not without disadvantages. In fact, conflicts related to
business
among
family
members have the potential to sabotage any
family
relationships.
For instance
, the dispute over either
business
owner or salaries might lead to a quarrel or even an avoidable
family
estrangement.
In addition
, non-family employees working for family-run
business
might
see
the way of running the
company
is not
fair
to them.
For example
, even if they perform
exceptionally
well and
make
enormous contributions to the
company
, chances are they will not
be recognized
enough
compared to those who are
family
members.
In conclusion
,
given
clear
advantages that family-run
business
have, there are
still
some
limitations. By acknowledging the limitations, the
business
owners can find the ways to dodge them.