Family businesses in the 21st century - specificity and succession
2009
Kaluza, H.,Akademia Podlaska, Siedlce (Poland). Katedra Ekonomiki i Organizacji Rolnictwa
The paper addresses dilemmas pertaining to managing a family business. A family company cannot be defined by one general definition so three groups of definitions are presented. The work outlines specificity of family business functioning. Family companies are less formalized and, as a result, more flexible, can more easily adjust to changes, are not that bureaucratized, which makes it easier for their leaders to take decisions, establish objectives or adjust them if necessary. Family businesses are subject to all the problems that beset small companies. In addition to typical predictable difficulties of such companies, there occur problems associated with the necessity of combining the priorities of the family and the firm. Weaknesses and potential risks of running a family business include: domestic discords transferred into the firm, generation gap in the company or turbulent moments associated with business succession. The issue of succession among family business owners is often passed over due to a number of reasons, for example lack of knowledge about or how to deal with the process of succession
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