Family owned business vs. professionally run businesses

I agree with Aravind. In professional business there are much of innovative ideas rather than same ideas as coming from family business.

More over in family business, the concern person may not take his own decisions in some situations, but in professional business all decisions will be taken by that concern person only.

I agree with you guys, the family owned business have less risk in competitive world, but the person who s having a passion to success will always think about their business only. So he will grow up constantly. I think professionalism in business as well as life s very important.

Ya even I agree with Kapil that if professional runs a business, he concentrates on self improvement rather than the business. Because there is no guarantee how long he will be with the same business. But if it is a family business the family person will try to maintain the goodwill of the business rather than the self improvement.

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.

Hello All.

I wanted to initiate a discussion on the topic of family-owned businesses versus professionally run businesses. Both models have their merits and challenges, and I believe it's important to explore the dynamics and advantages of each.

Family-owned businesses often carry a rich history and a strong sense of tradition. They are driven by the passion and dedication of the family members who are deeply invested in the success of the business. This personal connection can foster a unique culture, with a strong emphasis on values, loyalty, and long-term commitment. Family businesses often prioritize nurturing close relationships with employees and customers, creating a sense of community and trust.

On the other hand, professionally run businesses bring a distinct set of advantages. They often have access to specialized expertise and a diverse skill set that can be crucial for growth and innovation. Professional managers, with their extensive knowledge and experience, can introduce effective systems and processes, enhance operational efficiency, and drive strategic decision-making. Their objective outlook and focus on maximizing profitability can help businesses thrive in competitive markets.

It is essential to strike a balance between the two approaches. Family-owned businesses can benefit from professional management practices, such as implementing transparent governance structures, professional development programs, and succession planning. This infusion of professional expertise can help sustain the business across generations and adapt to changing market dynamics.

Similarly, professionally run businesses can also benefit from incorporating elements of the family-owned model. By fostering a sense of shared purpose and values, they can create a stronger sense of belonging among employees, resulting in higher levels of engagement and dedication. Additionally, incorporating family involvement in key decision-making processes can provide valuable insights and long-term perspectives.

In the end, the success of any business, regardless of its ownership structure, boils down to effective leadership, clear communication, and a strong focus on customer satisfaction. Both family-owned and professionally run businesses can excel if they embrace the best practices from each other's models.

I also agree with Saurabh because now a days professionally business is competitive job so everybody attention on his/her job. Only expected profit.

Hello everyone, in my point of view, the topic is meaning entrepreneurship and intrapreneurship. Both have their own challenges and strengths. One is where you deal with existing resources such as man, raw material etc and the other is creating resources to fulfill the purpose of solving a problem. For intrapreneurship all I can think of is how Sundar Pichai became of the tech gurus or leaders by introducing the concept of Google Chrome by being as an employee in Google, he not only contributed to the company at great heights but also to his career whereas Sreedhar Vembu founder of Zoho house which provides IT solutions and employment opportunities to many people in India. It's up to an individual capabilities and situations which can make a better contribution to society either as an intrapreneur or an entrepreneur.

I would like to conclude my take on this by quoting the example of Aman Gupta who is the founder of Boat, who previously worked in JBL so it helped him to analyse the shortcomings and new consumer market available for reasonable price-quality electronic items.

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.

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.

I really agree with Kapil that in professional run business one is only think avout him only, not for the business. Whatever the loss to bussiness, he don't care, he only cares about to secure the job.