Family business has been a integral part of the business eco systems through ages.

One of the
core idea behind Family business running across the globe have contributed to the business
environment and part of evolving global multi-cultural society. Family business per se has
contributed significantly across the global economies. The complex business environment has
prompted the Family business also adopt to the management practices existing in the arena of
business environment and also evolving management models. Even though Family business has
adopted various system theories into their practices, other theories like strategic management,
agency theory is making inroads. At the core facet of the organizational forms Family enterprises
have been defined having either involvement approach and the essence approach, Component
approach captures the nature and extent of family involvement in business, while the essence
approach focuses on family aspirations as well as family involvement (Chua, 1999).

Family business can be defined as companies managed by members of a
single family or group of family members. There has been various attempts on defining Family
business, none of the definition is still universally accepted. Often there is a two important
components in a business environment of this domain is family and business, these two
subsystems interact each so as to comprise a whole system known as Family business. One of the
well known accepted three circles model (Lansberg, 1988) defines the Family Firm System
where each circle represents Family membership, ownership and managerial roles of internal
family. Some researchers have defined the family business by the degree of ownership or
management by family members (Barnes & Hershon, 1976; Dyer, 1986), others have focused on
the degree of family involvement (Beckhard & Dyer, 1983), and some have used the potential
for next generational transfer as a defining factor (Churchill & Hatten, 1987; Ward, 1987).

Family owned business (FOBs) play a significant role in both, the stability and health of
the new global economy (Klein, 2000). As per the Chrisman (2003) a family firm is operated by
the components of a familys involvement in the business: ownership, management, or business
succession. Some definitions reach from one hundred percent ownership over the majority of
shares until the majority of control (Chua, 1999), or they deal with the question whether
governance by the family is enough or management of the firm would be necessary. To succeed
the business in a family system, succeeding generation needs to be trained and well prepared to
take over the Family business succession. Family business succession is defined as the handing
over of management control to one or more family members (Gasson, 1992).