In today’s world, family-run businesses have been becoming increasingly popular. This phenomenon has both positive and negative aspects due to several reasons. This issue will be discussed further in this essay.
To begin with, there are a large number of advantages about family-owned businesses. This type of entrepreneurs usually recruit employees being blood relatives, building up a valid foundation of long-term trust and loyalty. To be specific, people are more likely to have a deep trust in their relatives, whose persons grow up and mature with them, rather than others. This can facilitate effective communication, especially during tackling problems, which may not lead to misunderstanding. Because family members tend to open-up and be honest with each other. Additionally, running family businesses helps preserve traditional occupations, due to passing down through generations. Taking the traditional Vietnamese fan-making crafts for example, handmade fans are crafted according to a traditional technique- secret family recipe, which may only pass down through family generations, and it may also mitigate the lack of jobs for family members
Despite the aforementioned merits, certain downsides still persist. One of the most crucial problems is that family-owned businesses may crack the family bonds. Because of being family members, some solely rely on this to be indisciplined in the workplace and reduce the job efficiency. As a result, when layoffs occur because of bad job performances, it creates a strong dissatisfaction and frustration cumulatively. As a consequence, this may bring negative aspects for member bonds. Besides, many employees do not have the ability to deal with their jobs, lack necessary skills; however, still recruiting in family companies. While it is possible to employ staff outside, who have professional skills and a high level of training, the boss is reluctant to dismiss them because they are members of the same family. This can limit the businesses’growth potential.
In conclusion, operating a business within the family has both upside and downside. To manage family-owned businesses effectively and professionally, the entrepreneurs need to make careful decisions based on different factors, especially should not be too overly accommodating to recruit or dismiss, instead they should prioritize the company’s benefits and goals.