Question: Some people think that the best way to run a business is within the

family.
What are the advantages and disadvantages of a family run business?

SAMPLE ANSWER-
In many parts of the world, businesses are owned and run by families. Its usual
contributors include close relatives who handle the resources and finances of an
organization. There are some benefits associated with a family business, but there are
also some drawbacks associated with undertaking a business venture with the family.
With the persistent commitment and involvement of the family members, firms run by
families have a greater level of stability and loyalty attached to it. Even during bad times
family ties can keep the firm running. The commitment of the family members results in
more dedication and flexibility. In other words, members would work together to achieve
a common goal irrespective of their qualifications. In fact, most successful business
ventures like Walton’s and Ambani’s are also run within the families.
On the contrary, one of the most compelling shortcomings of a family business can be
conflicts among the partners than can have an unfavorable effect on the business. For
instance, the rivalry between husband and wife or siblings can result into the partition of
the venture. In addition, the lack of interests among people to join family
entrepreneurship leads to apathetic employees. And sometimes the successors of the
business are not capable enough to run it due to which the organization suffers.
To conclude, there are both supporting and opposing arguments for a family business.
Many experts believe that building an organization with family helps keep the family
together. With communication and understanding, a dispute in family entrepreneurship
can be avoided.
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