What is Family Business?
A family owned business may be defined as any business in which members of one family across generations are involved in the business operations and where the majority of ownership or control lies within the family. It is an interaction between two separate but connected systems – the business and the family – with uncertain boundaries and different rules.
Most of the esteemed, best performing companies in the world are family-owned. Despite their inherent strengths and significant contribution to their nation’s economic growth, such companies do not last beyond the third generation of family members as they face unique challenges involved at the individual and group level, in the family and business. The operating dynamics are crucial and revolve around ideologies, mindsets and generation gaps. There is a thin line that separates two interdependent and interrelated systems with often-conflicting values and behaviours.