ne that has its ownership having 50% and above shares owned by a certain family though most are those that are completely owned and controlled by a single family entity (Gordon 2008 p 7). The success of these businesses faces various challenges which have been discussed in this essay. Also, they have their advantages over nonfamily businesses especially in attracting customer loyalty as well as other factors that have been discussed. Succession also has been identified as a key issue that results to conflicts especially in the process of passing the business from one generation to the other. This essay is an evaluation of the criteria that academics and others use to assess the relative success of a family business.
A family business is one whereby a family owns 50% or more of its property. It could be an inheritance from previous generations in the family linage or it could be an investment of the current generation in the family. Family businesses are faced by various challenges which may determine their success. Some of these challenges may arise due to the emotional attachments that family members may have on the business (Fleming 2002 p 67). For example, a case of divorce or separation may tamper with the administrative roles that the partners may hold. This may result to poor communication which is an essential tool in the well being of the business. As such, the formulation of policies and strategies may be hindered thus leading to the downfall of the business. Successful family businesses are those which disintegrate family issues with business. Personal differences should be solved in different avenues other than in business meetings and also business issues should not be discussed in family gatherings such as weddings and parties. If this is not checked, it may interfere with the well being of the two institutions which may result to constant conflicts. Any time wasted through poor interpersonal relationships between the family members should be