FAMILY BUSINESS

Family Enterprises: Sustaining The Small Family Business



Family Enterprises: Sustaining The Small Family Business

Introduction

Family businesses have problems of a very particular that are not present in other businesses. We often find the family business is run more by intuition and experience with basic administrative procedures and planning (Alderson, 2011a).

Discussion

Characteristics of the family business:

"When you reach an obstacle, turn it into an opportunity. You have the choice. You can overcome and be a winner, or you can allow it to overcome you and be a loser. The choice is yours and yours alone. Refuse to throw in the towel. Go that extra mile that failures refuse to travel. It is far better to be exhausted from success than to be rested from failure" (Ash, 2011a).

In Mexico, as in many other countries, large firms are family structure. One company, in its strictest definition is "a difficult action that is undertaken with resolve", then that family business is "difficult for a family action rushes through resolution", and it undertakes its own assets (equity) to succeed (Alderson, 2011a). We consider a family business is a productive unit, usually small, belonging to the family who founded and directs a member of that family. Basically, family businesses have the following characteristics:

Within the family business the most important positions (those who have authority and responsibility to make decisions) are held by the members themselves.

In these companies the power of decision (control action) lies entirely or mostly in the family and is operated by one person or the family.

The homestead is involved in the company so that it can be considered familiar.

They are made ??by the founder (parent) and their children. This is the basic structure of that part of a typical family business (Alderson, 2011a).

Other common characteristics of these companies are operating under a system of family finance, and consequently limited and based on the heritage of the family.

Family businesses are not necessarily small

“We were young, but we had good advice and good ideas and lots of enthusiasm”. (Gates, 2011)

Family businesses can be any size and develop any type of activity, for example, large food corporations and foreign nationals are family 100%. This suggests that there must be some reason why this form of enterprise is so common. We then define what a family business is based on their characteristics:

The company is, its shares are held by members of the family, either in whole or in part and, consequently, decisions are made ??through the family.

The positions belong to members of the family.

Generally, a family business is involved: the father and / or mother and children, but may be other relatives such as uncles, cousins, grandparents, grandchildren, in addition to non-family employees.

The family estate is linked to the company, in whole or in part (Alderson, 2011b).

Family businesses have many advantages, especially because the affective core families are the strongest we have, in these people are willing to tolerate and forgive others and to work in adverse situations backing and supporting each other (Arieu, ...