By Denise Kenyon-Rouvinez, John L. Ward (auth.)
The relations company has been the main popular and pervasive type of enterprise in lots of nations and increases specific questions relating succession and governance and specifically the relationships among administration, board participants and kinfolk. This publication is a suite of articles through prime thinkers and practitioners at the relatives enterprise which covers such concerns as assuring a fit kin enterprise, kin approach, governance and succession
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Extra resources for Family Business: Key Issues
Many family businesses are also significant contributors to local economies through the creation of employment, and they often develop close associations with the communities where they are located. These close associations can add great value to the business. Family Employment Family businesses face the additional challenge of effectively managing family employment. In small family businesses, family members are often the source of relatively cheap labor that will work longer hours and provide greater employment flexibility.
The long tenure of leadership found in family companies can lead to entrenched strategic paradigms. Successful successions in family companies, however, can create powerful opportunities for strategic reassessment. Successors often question long-held business assumptions, drive better business performance, and more aggressively pursue new ventures that can create growth. In family business, the key to renewing strategy is often the effective transition of control to succeeding generations. When this is accomplished, family companies maintain a powerful ability to innovate and sustain their entrepreneurial cultures.
A consensus decision-making style is usually followed. Consensus brings commitment; but it can also bring stalemate. The risks of disagreement can be threatening as they can destroy lifelong family relationships motivating expensive exits or redemption by team members that can be crippling to the company. 12 Family Business Over the generations, ownership may become widely dispersed among many owners – usually but not necessarily family members. Because these dispersed owners are often third or fourth generation cousins, this form of ownership is referred to as a Cousin Confederation (stage III).
Family Business: Key Issues by Denise Kenyon-Rouvinez, John L. Ward (auth.)