Family owned business vs. professionally run businesses

In my view i support professionally run business because one can have work satisfaction with his own business rather than looking over family related business.If we get into family owned business one should work under the guidelines of our family members and maintain the reputation of the business.But if you opt for professional run business you can implement your own ideas as the result may effect your business itself.Mean while you can have suggestions from elders and implementation of their ideas is your concern.So i opt for professionally run business.

I with you guys, I thought that professional management is better, because they give more concentration to social responsibility, that means consumers related products and they want to reach consumers needs and wants and in the organisation also they maintained faith on participative management.

It means they give opportunity to other subordinates to involved in decision making. But in family business profit is main motive and also reputation. Overcome this also there is one big problem. That is conflicts between each others.

Professionalism:

1. Lag in commitment with workers than family business.
2. Chances for less co-ordination.
3. Chances for shut-downing without the approval of all people in the organisation.
4. Owner concentrates on profit rather than human.
5. Workers may feel uneasiness.

Family business:

1. Kartha of the family will lead all the members of the family.
2. Forcing of work will not be there.
3. As family members they have responsibility.
4. Easy to control and sometimes it may reverse.
5. Fully committed workers (members).

Even I'll agree with Kapil that in the family owned business his main intention is to improve the business n success towards the business. Where his /her involvement and improvement is very less in this family owned business.

In this present generation professional business is very much competitive and every one will be looking forward towards their self achievement and they will come up with their innovative ideas. Finally the main goal to gain more profit individually.

Family run business:

More centralization in decision making
Product centered business
Ownership is there
Tightly runned

PROFESSIONALY RUNNED

Decentralization of decision making
Turnover centred business not product specific
Loosely held
Lacks ownership

I belive companies who are successful are family owned companies
professionally runned

1.Ownership is still there
2.Decentralisation of factor based decision making
3.Sector based business model
4.Wisely held

Getting on a logical conclusion, issue is actually with lack of professionalism in family run business... professional managers should be appointed in family run businesses.. so as to increase the goodwill of the business as it perhaps gives a right path leading to success, such managers provide proper working techniques as he is professioanlly trained... and then aside all these matters,he is master in making the strategies for an effective business..!!!

Hi everyone,

My priority goes with the family-owned business. We always look through the negative side of family owned business while it has many productive benefits. Yes, I do agree that there are some limitations to family-owned businesses.

The success of any business depends on better management. Management is nothing but having a better understanding. Family creates a better understanding leading to better management. In short leads to success.

Hey friends according to me family business is really risky nothing can be predicted and even more than that results in fight between family which further leads to negative thinking about each other and on the other hand professionally run business is some what better then the family business because it's better gaining profit individually without any fights and staying happy and let other be happy without any bad thoughts about each other's mind.

Professional run business' are more likely to take risks hence they have higher gains (or losses) but a family run business is less likely to take a riskso they generally have more stable profits. Morever in family run business' there is more centralisation of authority which makes it extremely rigid and cumbersome, whereasin professional run ones the authority is more decentralised hence decisions are taken faster.

A family business is what actually lacks professionalism as the management and the ownership are in the hands of family members, where the desires and demands of the family members clash with the company objective and goals which they wish to achieve whereas in a professionally running business the all the work is done under the supervision of professional managers, where professionalism is given utmost priority.