Investigating the Challenges of Family-Owned Businesses in the Corporate World

Abstract

A strong scholarly and professional interest has been noticed in the field of Family-owned Businesses (FOBs) studies. Various researchers have conducted studies on different dimensions of family-owned businesses. An effort was made in the present study to have an overview of the various studies on FOB and identify the research gaps that can be used for future studies. A thorough investigation of the available literature revealed that family-owned business is quite an attractive business structure globally, but very few studies have been done to analyze the factors that influence small and medium size FOBs.

The unique family business characteristics, challenges and opportunities stated in the theoretical framework can be applied to the family businesses used in this research. Our economy depends on the success of family-owned businesses, but only one third of these organizations successfully transition to the second generation and only one in ten survive to the third generation. While a series of best practices attempt to prescribe solutions their challenges, these practices fail to account for the various types of family-owned businesses. Family Businesses form the pillars of most economies across the globe.

These businesses are a major contributor to wealth creation and employment creation which at the same time have ensured that quality products and services reach to the consumer. Most successful multinational business has commenced their operations as Family Businesses and has successfully grown to be multinational brands. These businesses they have their own set of strong points as well as weaknesses. Like any other business, corporate governance is as much of concern here. In this paper we will discuss. Investigating the Challenges of Family-Owned Businesses in the Corporate World.