The Importance Of Family Business

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Most businesses we see today are family owned businesses and they have been noted to account for the largest percentage of the businesses in many nations (Kuratko and Richard, 2004). Looking at past studies, it has been asserted that nearly 92% of the businesses in the United States are all controlled by one family or the other (Kuratko and Hodgetts, 2004; Lam, 2009). Davis and Harveston (1998) suggested that family businesses are the most dominant form of business in the United State and they represent nearly 90% of the total businesses in U.S.The importance of family business are visible especially in employment generation, economic growth, transformation and wealth creation. Kuratko et al., (2004) reported that family business generates…show more content…
A family firm is one in which at least 50% of the ownership and management falls within one family – whether related by blood or marriage (Lee-Chua, 1997). “The family business is a business governed and/or managed with the intention to shape and pursue the vision of the business held and controlled by members of the same family or a small number of families in a manner that is potentially sustainable across generations of the family or families” (Chua, Chrisman, & Sharma, 1999). Although there is some debate over the precise definition of a family business, most revolve around the kinship of family members owning and running a venture (Heck & Trent, 1999; Rogoff & Heck, 2003;Wortman, 1994). Indeed, it is the intersection between family members, the family, and the business that is believed to represent the unique set of features that explains differences in performance between family and non -family businesses (Habbershon, Williams, & MacMillan, 2003). This intersection also represents a source of conflict within the family and within the business (Daily & Dollinger, 1993; Harvey & Evans, 1994; Kellermanns & Eddleston, 2004). Conflict within the family may arise as a result of business issues such as disagreements over growth targets, succession, product offerings, or even from seemingly mundane issues like hours of operation. Conflict within the business may also…show more content…
Family Businesses in Ireland believe they play a vital role in the country’s economy by creation jobs, and adding stability to a balanced economy. 3 companies were studied and based on the research 55% plan to hand the business down to the next generation, with a further 15% planning to pass ownership of the business down but will engage non-family management. In other cases some are worried about the future in an era of increasingly fierce global competition from large companies; and plans to seek support in adapting and reinventing themselves in order to thrive and survive. Based on these, 76% of family businesses in Ireland have put procedures in place to deal with family member issues and conflicts. The data required for this research is to analyse the percentage of family businesses that have survived through succession as against non family businesses and the far reaching effects of its survival through generations to come. This study is founded on data collected from 20 interviews on three case samples. The approach of the research was qualitative and sought understanding through “actions, processes, objects and

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