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.