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The great majority of emerging business
giants are in fact large family businesses or simply, closely-held
private equity companies.
Family
Business have many advantages which enable them to compete head on
with publicly listed companies. However, when family members work
together, emotions may interfere with business decisions. Conflicts
may arise as relatives see the business from different perspectives.
Those who are silent partners, shareholders and directors are likely
to judge capital expenditures, growth and other critical matters
primarily in money terms. Those engaged in daily operations are more
likely to be concerned about production and sales figures and
personnel matters. Obviously, there is potential for conflict.
In
some family companies, daily operations are hampered by conflict; in
others, the challenge is a high turnover rate among nonfamily
employees. Growth also may be a dilemma if some relatives are
reluctant to plow profits back into the business. Conflict in the
business also can be aggravated by family members who have little
talent for money or business -- the offspring of company founders
who lack business acumen or in-laws who must be employed without
regard to their ability or the company's needs. So the job of
managers of a family-owned business may be complicated by relatives
who must be reconciled to working together in a business.
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In this Knowledge Area, you will find a list of
useful published knowledge and
insights from GEGN about Family Business Management and Corporate
Governance.
You can browse through the material and choose knowledge according
to your area of interest:
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