Entrepreneurship----Strengths and weaknesses of family businesses Essay

Entrepreneurship----Strengths and weaknesses of family businesses - Essay Example The degree of control over inter departmental affairs is relatively strongly managed in family businesses. The culture is considerably flexible, informal and occasional use of local language might be seen in practice. Long term dependencies and affiliations are another feature of family businesses. Such businesses are not total loss; rather have lots of positives to them. The first and foremost advantage being enjoyed in such cultures is that of trust, reliability and endurance. The chemistry amongst the members of the kin creates a benevolent atmosphere in itself which is very fruitful for the overall working environment. For many, the family businesses perform much better than other kinds of businesses and evidences have been seen where the throughputs have been far better compared to their non allegiance based enterprises. Weaknesses: The weak links in any family business often starts with the succession of an individual by a family member which might be compromising in context of the merit and requirements of professional operations. The resistance to change is relatively more deep routed in the company as personal biases are involved directly or indirectly. The family business environment is often termed as closed loop business atmosphere, since it in contrast to the conventional form of business environment, has relatively related faces around that are more loosely in the organization and business because of personal belonging and affiliations. The existence of obligation to transfer the power amongst family member regardless of the capabilities and professional experience, this serves as serious draw back in this concept of business world. Meritocracy is often believed to be compromised in such forms of business. Personal enmity and competition in a negative way can be another damning factor in the working environment of