ADVERTISEMENTS: Meaning of
Family Business: Types and Attributes! – Meaning: Family company has been
common on the planet, it is perceived in a sense. Conditions like family owned,
family commanded company houses, and homes are used to refer to family
enterprise. The term family company conjures up different meanings to different
men and women. While some see it is considered by others as neighborhood
company, and others suggest it. Types: Therefore, there are various definitions
of family business. For the ease of understanding, all definitions have been
categorized into two types based on process and the structure. Structured
Definitions: These definitions are given based on ownership and\/ or management
of family business.
Some definitions are Ownership control by one
family’s members. Barry Majority ownership by participation and a family by at
least 2 members in its operation. Rosenblatt, de Mik, Anderson, and Johnson.
Controls company shares, a portion of the companies management is drawn via the
family. Leach et al. Procedure 1: These definitions are based on a family is
concerned with the company. Following have been some of such important
definitions of household enterprise: Family enterprise is a firm that has been
closely identified with at least 2 generations of a household and once this
link had a mutual influence on business policy and on precisely the interests
and objectives of precisely the household.
R. G.Donnelley – Family businesses are those in
which policy and decisions are subject to significant influence by more than
one family units. This influence is exercised through possession and sometime
throughout the participation of members of the family in management. Shankar
and Astrachan note that precisely the criteria used to define a household
enterprise may include! Percentage of ownership, Voting control, Power over
tactical decisions, multi-generation involvement and Active, and Active
management of members of the family. In an effort to solve definitional
ambiguity surrounding family enterprise research, Litz indicates that an
enterprise can be defined as a family enterprise when its possession and
direction are concentrated within a family unit.
Furthermore, he argues that to be considered a
family business, the business members must strive to achieve, maintain, and\/or
increase intra organizational family based relatedness. In sum and substance, a
family enterprise may simply be defined as an enterprise one which includes 2
or more members of a household with financial management of the business. A
group of individuals belonging to more than one families run one business
enterprise. B. Position in family enterprise is influenced by the relationship
the members of the family enjoy among themselves.
Managing The Family Business
