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The Competitive Advantages of Family Business in the Business Industry Compared to Non-Family Business

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Submitted By kateleenreyes
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Running Head: Successful Family Business 1

The competitive advantages of family business in the business industry compared to non-family business
By
Kateleen Louise L. Reyes

En12 (Communication in English II)
School Of Management
March ,2013

Running Head: Successful Family Business 2

Family businesses are vital in every country and have an important role in our global economy. In many countries, family businesses control significant parts of the economy as well as the economic structure. Family businesses are icons of countries that show their hopes, dreams and entrepreneurial spirit; moreover they aim for self-sufficiency and wealth. Family businesses’ importance and significance were recognized recently but they are considered to be the most prevalent and pervasive form of business. Family businesses are businesses owned and controlled by families that also have at least one of the following characteristics: the business should have three or more active members, family control of 2 or more generations and the current generation intends to pass the business to the next generation of the family. Family businesses having three or more active members is one of the characteristics used to differentiate them from non-family businesses. Family members are more active in the involvement of the enterprise’s everyday activities whether it is the formal or informal employment of family members. Some use the terms “employment”, “involvement” and “activity” of family members or relatives to be considered as a family business. In addition, active family members are needed since family business is built upon a community of people that includes owners, managers, and are family members, and others who are not. Their roles and interests may develop complexity among them but the family members that are committed in maintaining the business are big factors for…...

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