Family Business

Family business are businesses that are created from their founding fathers of that era, if may evolve from small businesses into big enterprises. Family business is playing a very important part in the economy of Malaysia; the reason is that more than half of the Gross Domestic Product of Malaysia is from the family businesses that are conducted in Malaysia. For example The Genting group and The Berjaya group are two of the most famous family businesses that are conducted in Malaysia. The following are the issues and challenges that are faced by family businesses in Malaysia.
The first challenge and issue that affects family businesses in Malaysia is succession planning which is choosing the next successor for the business after the current successor retires or passed away. Choosing a successor is one of the biggest challenges and is often faced by family businesses in Malaysia. Choosing a successor is hard because there are many factors that need to be considered before delegating him or her to be the successor of the family business. The first factor is of course the capability of the potential successor, to see whether he or she is up to standard andable to handle the responsibility that is about to be passed onto to see whether they qualify for the position. The second factor is that the potential successor must have certain amount of knowledge about the business and must know every part of operation of the business in details. The potential successor must also have very good management skills and have a good relationship with everyone involved in the business in order to have smoother process when sharing business ideas.
The second challenge and issue that affects the family businesses in Malaysia is family disputes which is the harmony between family members and also within the business. The reason why it is one of the challenges and issues is because some of the family members or people involved in the business are always jealous of each other, or they