Family-Owned Business Advantages
Families are more likely to stick together and do what is necessary to keep the business going during hard times. Having that bond is just one of the advantages of being a family-owned business.
Family-owned and/or run businesses comprise a significant percentage of all the companies in the United States and have for decades. 64% of U.S. gross national product comes from family businesses, according to the Conway Center for Family Business. In fact, 35% of Fortune 500 companies are family controlled. You’ll notice many family members running local shops and others with their names listed as founders of major corporations. A family business may mean the company was started and/or run by a husband and wife, brothers, sisters or the whole family. Some have been passed down for generations. In fact, family run businesses have deep roots worldwide. The oldest family run business is a Japanese hotel called Houshi Ryokan, which has been run by the same family since the year 718.
FAMILY-OWNED VENTURES HAVE SEVERAL ADVANTAGES:
They can bring family members together on a shared project, or mission. Close-knit family members are also able to put in the extra effort it takes to start and run a business. This is typically because they have a strong commitment and personal loyalty to one another. During downtimes (which occur in any business), families are more likely to stick together and do what is necessary to keep the business going.
There is also a sense of stability since a business can continue from generation to generation. And if young family members are interested, they can learn the business as they grow up, which means they are more likely to be engaged as they become more involved at a later age.
Families may also have a stronger built-in work culture, which is typically passed from one generation to the next. Flexible schedules, childcare, and other perks you need to negotiate with employees can be much easier to work out.
Family members may be more willing than hired employees to make sacrifices to get the business off the ground, which can minimize expenses.
