AARON JOLO D. ALCANTARA PROF. CHRISTIAN P.

TAN

BSE 2A

FAMILY BUSINESS

Family business is a business activity owned and managed by more

than one member of the same family. This influence is exercised through
ownership and sometime through the participation of family members in
management. A family business can simplify be defined as a business one
that includes two or more members of a family with a financial control of the
company.

They have a family business advantage , common values , strong

commitment , loyalty, stability and decreased cost. These advantage explain
the predominance of the family businesses and the increase in firms owned
and operated by the families. There is also the strong motivation to keep
business going, as a outcome of direct and personal effort. They also have
disadvantage of family business like lack of experience and skills, succession
planning and etc. The second disadvantage is the impending conflict
between the family values and family business, and conflict between
personal life and the business. The founder of family business is a man and
woman and plan to pass it on to a son or daughter. Some founders achieve
delicate balance between their business and family responsibilities. Some of
family business are owned and manage by husband and wife teams. In the
families with the number or one or two daughter become involve in the
family business. Good management is necessary for the success of any
business, and the family firm no exception. The key to success their family
business is to cooperate their family and relatives at understand each other
and build as a one team to make sure their business 100% to success.