Detecting Challenges in family Business-Free-Samples for Students

Question: Discuss about the Challenges for Family Business. Answer: The following essay is going to delve in to the challenges that are cohesively found to have been affecting the growth of family business. As a matter of fact, this has remained impactful in terms of decision making process and implementation of innovative business model. Number of challenges has been detected while conceptualizing the futuristic efforts of business growth that has already been in existence. Preoccupation of those challenges and incorporation of nurturing idea ought to be developed while considering the revamping process. Due to difference in perception of driving the business, individual choice and perception needs to be ventured with effectiveness. Family owned trading is being talked about. Family businesses are considered to be one of the most traditional modes of conducting business within the private sector business industry (De Visscher 2016). Though such types were earlier considered to be the weakest link in the span of business conduction, many family businesses have been proven successful with their successful business venture and market record. Beginning of the twenty first century has witnessed certain rise in the importance of family business with effective structural change. Globalization has acknowledged the value of such business practice with the help of proper understanding of the fact, how the core concept would focus on the basic changes within and outside the family decisions. In case of trading several business clauses ought to be taken into consideration since they involve the acceptance of different challenges in the differentiation of viewpoint. Due to realization of the economic contribution of the family businesses, the structural changes are to be fortified with the flow of generation. The challenges undoubtedly vary with the contextual characteristics of the countries and the domestic economies (Benavides-Velasco, Quintana-Garca and Guzmn-Parra 2013). Most of the businesses views are perceived with different concepts the challenges become more prominent. Following challenges have been detected that would hinder certain growth of the family business: VisionGrowthControl of OperationsTrainingPaternalistic ApproachDifferences in CommunicationInformalityTunnel visionLack of written strategySystematic thinkingCompensation Problem for family MembersRetirement and estate PlanningExist strategyBusiness ValuationHigh Turnover of non-family Members Detection of the setbacks of family business has to be incorporated through the idebtification tools. In this regard, this has to be taken into certain consideration that the entire shortcoming ought to be revamped with strategic planning and recommendation. (Neubauer and Lank 2016). As a matter of fact, as a next generation entrepreneur the responsibility falls upon an individual pertaining to the effective changes of the company and the business process. The problem lies in this fact that most of the family businesses are run on the ideologies set by the precursors rather than the ideologies run by the upcoming generation. Hence, lack of shifting capability results in utter failure of the business. The intergenerational transfer of wealth and business leads to a complex and situational comprehension of the performance, pertaining to the effective source. The process has remained quite effective in the matter of the entire case of driving the existing business practice associated wi th innovative idea (Flamholtz and Randle 2016). Each family member has individual vision that is implemented into the business policies of the company. Since this has been taken into certain consideration in regard to the factors related to the entire concept of the issues, the business goals are highly contextual with the effective understanding of the issues. The business goals and visions are often considered to be conflicting. In the existing family business, the vision and goal has such difference because of the difference in moral and social thought process. For instance, in Singapore, culture plays an important role in decision making process of a business. However, the entrepreneurs of this generation give more value to the professional discourse than the cultural discourse. In this era, professional excellence has become a dominating force in collaboration with the cohesive culture. In the trading business a cohesive culture can be implemented. The vision would be to maintain a cohesive and stronger workforce that would a ddress and comply with the competency of the human resource of the organization (Evert et al. 2016). The other challenge for the next generation entrepreneurs to run a family business is the lack of capital that effectively hinders the growth of the company. Since the next generation entrepreneurs tend to re-invest due to creating the process of business renovation and expansion, a conflicting nature always prevails to pull it back. In this case, the strategy would be effective revenue process that would be taken into certain understanding of the process. In this case a stringent though democratic policy would be strategized so as to confirm the effort of those members in to effectiveness. All the organizational members ought to be treated equally so as to eradicate the sense of partiality. The other challenge has been the control of operations. There are several members and one of the most difficult tasks for the entrepreneurs is to control the members and keep them motivated so as to ensure higher level of production and operations process. However, the problem lies in this fact that there are other members of the family and due to lack of professionalism, many of them tend to take it for granted. Supervision of such members becomes quite difficult a job for an entrepreneur where familial conflict would pop up to hinder the ease of business process (Poza 2013). Training becomes a tough challenge while conducting a family business. Inclusion of family members in the business needs to be devised through effective training program as they might not be experts in the same field. In this case the development of expertise ought to be injected within the family members who are likely to be new or novice in this specific sector. In most of the cases, it has been found that lack of effective training programs lead to utter failure of the business during the age of transition. References: Benavides-Velasco, C.A., Quintana-Garca, C. and Guzmn-Parra, V.F., 2013. Trends in family business research.Small business economics,40(1), pp.41-57. De Visscher, F.M., 2016.Financing transitions: Managing capital and liquidity in the family business. Springer. Evert, R.E., Martin, J.A., McLeod, M.S. and Payne, G.T., 2016. Empirics in family business research: Progress, challenges, and the path ahead.Family Business Review,29(1), pp.17-43. Flamholtz, E.G. and Randle, Y., 2016.Building Family Business Champions. Stanford University Press. Neubauer, F. and Lank, A.G., 2016.The family business: Its governance for sustainability. Springer. Poza, E.J., 2013.Family business. Cengage Learning. Steier, L.P., Chrisman, J.J. and Chua, J.H., 2015. Governance challenges in family businesses and business families.Entrepreneurship Theory and Practice,39(6), pp.1265-1280. Ward, J., 2016.Perpetuating the family business: 50 lessons learned from long lasting, successful families in business. Springer.