ACCT 201 Quarter Research Project
The Two Sides of the Family Business
The Two Sides of the Family Business Many people may think it would be wonderful to run their own business. They can imagine the freedom of being their own boss, making the decisions in the day to day running of their company, and keeping the profits for themselves instead of spending their blood, sweat, and tears for someone else’s benefit. And if this was a family business? That can make it seem even more attractive. Working with loved ones, sharing in the fruits of your labors together. But this can be a very romantic notion, especially when we look to business outside of the United States. It is true that being part of a family business can have the advantages as stated above, but it also comes with its own list of hardships that may not be suffered by a non-family run company. There can be many pros and cons to both types of businesses, and with that means different types of strategies to overcome individual obstacles. This takes looking at both types of companies from the outside with an objective eye and seeing what the advantages of each are as well as the pitfalls. In the United States it can be decidedly easier to start up a business than in other countries. We have more access to capital than many other places, as well as things such as crowd funding, or even just working and putting money aside until we have enough funds for a startup. This however is often not the case in more disadvantaged areas, particularly in African countries where the need to make one’s own economy is almost paramount. A study published in the International Journal of Production Research, talks about both sides of the family business in a place that desperately needs to see jobs for its residents. Starting up a business can be very hard in Africa, and the non-firm, or family business, appears to be the hardest and that is simply because people lack the knowledge on how to obtain capital for their venture. They also often lack
The Two Sides of the Family Business Many people may think it would be wonderful to run their own business. They can imagine the freedom of being their own boss, making the decisions in the day to day running of their company, and keeping the profits for themselves instead of spending their blood, sweat, and tears for someone else’s benefit. And if this was a family business? That can make it seem even more attractive. Working with loved ones, sharing in the fruits of your labors together. But this can be a very romantic notion, especially when we look to business outside of the United States. It is true that being part of a family business can have the advantages as stated above, but it also comes with its own list of hardships that may not be suffered by a non-family run company. There can be many pros and cons to both types of businesses, and with that means different types of strategies to overcome individual obstacles. This takes looking at both types of companies from the outside with an objective eye and seeing what the advantages of each are as well as the pitfalls. In the United States it can be decidedly easier to start up a business than in other countries. We have more access to capital than many other places, as well as things such as crowd funding, or even just working and putting money aside until we have enough funds for a startup. This however is often not the case in more disadvantaged areas, particularly in African countries where the need to make one’s own economy is almost paramount. A study published in the International Journal of Production Research, talks about both sides of the family business in a place that desperately needs to see jobs for its residents. Starting up a business can be very hard in Africa, and the non-firm, or family business, appears to be the hardest and that is simply because people lack the knowledge on how to obtain capital for their venture. They also often lack
References: Ayyagari, Meghana, Asli Demirgüç-Kunt, and Vojislav Maksimovic. "Firm Innovation In Emerging Markets: The Role Of Finance, Governance, And Competition." Journal Of Financial & Quantitative Analysis 46.6 (2011): 1545-1580. Business Source Premier. Web. 1 Dec. 2014. Acquaah, Moses, Kwasi Amoako-Gyampah, and Jayanth Jayaram. "Resilience In Family And Nonfamily Firms: An Examination Of The Relationships Between Manufacturing Strategy, Competitive Strategy And Firm Performance." International Journal Of Production Research 49.18 (2011): 5527-5544. Business Source Premier. Web. 1 Dec. 2014. Jurgens, Ulrich. "Shaping The Future Of Work." British Journal Of Industrial Relations 33.4 (1995): 685-687. Business Source Premier. Web. 1 Dec. 2014.