Enterpernership management
Family owned Business
A family business refers to a company where the voting majority is in the hands of the controlling family; including the founder(s) who intend to pass the business on to their descendants.
Family businesses have always been an integral part of the Indian economy and society.
Largely founded on the joint family principle of ownership and management, their contribution has always remained very high. However, family business as a system has inherited an identity associated with features such as, non-professionalism, conservatism and poor governance. The fast-paced changes in business environment in the past two decades have altered this to an extent. Today family owned businesses are perceived as much more respected, entrepreneurial, growth driven and much better governed, contributing immensely to the country’s growth story.
In some countries, many of the largest publicly listed firms are family-owned. A firm is said to be family-owned if a person is the controlling shareholder; that is, a person (rather than a state, corporation, management trust, or mutual fund) can garner enough shares to assure at least 20% of the voting rights and the highest percentage of voting rights in comparison to other shareholders.
Some of the world's largest family-run-businesses are WalMart (United States), Samsung Group (Korea), Tata Group (India) and Foxconn (Taiwan). Family owned businesses account for over 30% of companies with sales over $1 billion.
Examples of family businesses:
Aditya Birla Group, Avantha Group ,Bombardier Inc. Dillard's, Ford, Gernatt Family of Companies, Jolly Time, Lundberg Family Farms, Mango, Mittal Steel, Panda Energy International, Pete's RV Center, Raymond Group, Samsung, Tata Group, Toyota, Trump Organization, Utz Quality Foods, Wal-Mart, Wawa Wegmans, WWE
Common threats to Family Owned Business
Family Feuding:
Family businesses are faced with internal conflict that typically arises from the inability to separate
A family business refers to a company where the voting majority is in the hands of the controlling family; including the founder(s) who intend to pass the business on to their descendants.
Family businesses have always been an integral part of the Indian economy and society.
Largely founded on the joint family principle of ownership and management, their contribution has always remained very high. However, family business as a system has inherited an identity associated with features such as, non-professionalism, conservatism and poor governance. The fast-paced changes in business environment in the past two decades have altered this to an extent. Today family owned businesses are perceived as much more respected, entrepreneurial, growth driven and much better governed, contributing immensely to the country’s growth story.
In some countries, many of the largest publicly listed firms are family-owned. A firm is said to be family-owned if a person is the controlling shareholder; that is, a person (rather than a state, corporation, management trust, or mutual fund) can garner enough shares to assure at least 20% of the voting rights and the highest percentage of voting rights in comparison to other shareholders.
Some of the world's largest family-run-businesses are WalMart (United States), Samsung Group (Korea), Tata Group (India) and Foxconn (Taiwan). Family owned businesses account for over 30% of companies with sales over $1 billion.
Examples of family businesses:
Aditya Birla Group, Avantha Group ,Bombardier Inc. Dillard's, Ford, Gernatt Family of Companies, Jolly Time, Lundberg Family Farms, Mango, Mittal Steel, Panda Energy International, Pete's RV Center, Raymond Group, Samsung, Tata Group, Toyota, Trump Organization, Utz Quality Foods, Wal-Mart, Wawa Wegmans, WWE
Common threats to Family Owned Business
Family Feuding:
Family businesses are faced with internal conflict that typically arises from the inability to separate