In many countries it is common for families to own and run their own business. Some people think this is the best way to run a business while others consider this a potential source of problems. What is your opinion?

From the dawn of civilization, family-run enterprises have been the most popular form of money-making. Opinions are divided as to whether such a format of operating represents the universal approach or not. It seems to me that the pros of it heavily outweigh its cons. Firstly, passing down a company incents a long-term development strategy of those at the wheel since families’ sustainability gets intertwined with the company’s one. Not only does the integration keep the directors plucked up, but it also encourages the successors toward being serious. Secondly, so vital a strong team spirit derives from blood relations; consequently, such firms are more likely to survive in times of hardship. Openness, honesty and rationality among relatives involved in managing the venture inspire them to work harder. The same situation may be traced among the young successors, who prepare to be at the helm, conceiving the need to take after the business they tend to be serious and responsible. However, some pitfalls do exist in the aforementioned. The proper and fair punishment for absent-minded conduct or other misdeeds may appear not an easy matter when it comes to relatives. Those family bonds that would have been glue and booster for the enterprise could be spoiled or ruined due to their nature; therefore, a wise and diligent policy is imperative for the top managers. To sum up, family-run businesses show strong viability, which may be jeopardized from the inside, so granted sober-minded approach and transparency almost guarantee long-lasting prosperity. Potential problems arising from family relationships could be foreseen and prevented; this makes such form of ownership superior in comparison to the others.