Management of a Family Business Essay Example | Topics and Well Written Essays - 3250 words

Management of a Family Business - Essay Example A family business can be described as the kind of commercial organisations where the decision-making process is often influenced by several generations of a group of people that are united by marriage or blood. In many instances, these people are often identified by the particular business through ownership or the process of leadership. It is important to realize that businesses that are characterized by an effective relationship between the owner and manager cannot fall into this category of businesses because of lack of the element of marriage or blood relationship. For this reason, family businesses are those that have a unique relationship of the leaders and managers of the particular business. In the recent, studies on the growth and operations of family-run businesses have been increasing; however, DeRond &Bouchikhi, explains that this is not always easy as compared to those businesses that do not have such kinds of mutual relationships. According to Deresky, one of the reasons that makes the study of these businesses something quite hard depends on the fact that these businesses do not always have proper standards of business management like other businesses. On many occasions, it is the high level of trust among the managers and other leaders that drives the growth and success of these businesses. These businesses tend to lack many of the requirements for effective financial reporting; additionally, very little information is often given to the public about these businesses regarding their financial performance as well as other important aspects