What is Family Business Management?
The family business is quite common in a country like India than anywhere else on the globe. Family-owned, family-controlled, family-managed, business house, industrial house, etc. are some of the names mentioned for family businesses. The family business is also known as a traditional business or community business or home-based business. A single-family usually owns and manages a business. The majority ownership by a single-family starts with at least two members being a part of its operations.
There has to be ownership of more than 50% of voting shares and an important part of the company’s senior management is usually from the same family. Family businesses usually involve the ownership percentage, voting control, authority over strategic decisions, involvement of different generations, and active management of family members. In simple terms, a family business is a team of people who belong to one or more families and they run one single business enterprise.
The position in the family business is usually decided by the relations that the family members usually have among themselves. The family business is in the form of ownership or in the form of a company’s management wherein family members are employed in important roles to carry out the business activities. The mutual interest of family and business helps the family members to come up with a policy for the company that is a win-win situation to the business and overall family as well.
The next generation takes over the family business. Most of the family businesses are caste-related. Every caste has an important culture and values that get carried on the family business as well. Usually in India, you will find a shop owner or a doctor, or a Chartered Accountant to get help from his family members to carry out his business activities in a smooth and trusted manner.