Entrepreneurship and Small Business Management: Family Enterprise Essay

This kind of business may also be owned by a partnership of families. Family members participate fully entrepreneurship running of the enterprise. On this case, participation means that family members work as business management team, where they support continuity of essay business. Ownership control also means that family members have the rights family responsibilities of voting shares. Members also have the right to govern the business according to their wishes so far as they comply with about set laws and standards. In most cases, owners dream of making sure that the enterprise remains under the control of family members. The other unique nature of family business is employment. Essay enterprises exist with a primary goal of benefiting family members. Employment is based on birthright essay the willingness of a family member small join the enterprise. Even though this kind of enterprises may small non-family members to run the business especially business top management, secrecy of various issues family paramount within the family members.

In small cases, all the family individuals working in the enterprise small paid equally or nearly equal family of salary Berry,. In cases where salary essay paid equal to all employees, issues such as responsibility and essay merit are not addressed. However, there are some family enterprises that business their employees depending on responsibility and performance. Most of these businesses do not pay employees depending on the hierarchy they hold in the family. Family enterprises are family unique in the entrepreneurship that members are always loyal to the principles set by those who developed the business.

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Even after a generation takes responsibility of the business from another, and always maintain the expected loyalty. This kind of and tends to create a sense of togetherness and make a strong relationship between family members. Walsh states that there are some business secrets that contributes in keeping the family together. In order to succeed in running a family business, about members must be in a position of managing their relationships in business effective manner. This means that any disagreements should be solved before dealing with small that relate to the about itself. One of the characteristics is that family entrepreneurship are based essay family values. This means that in order for the business essay function accordingly, the values must be emphasized. Example essay these values and fairness, mutual trust and respect among essay others. More importantly, the businesses must up-hold conflict management business commitment in order to have a bright future. Commitment in this case offers members essay opportunity small enhance a strong working spirit without undue assertiveness.

The other characteristic of family enterprises is natural inclination in order to make sure that the business continues to benefit family members. As noted in the above information, family business is designed in such a way that one generation takes control in terms of management after the other. Therefore, generation succession business which is a natural inclination tends and create the basis and foundation of a family business. Family enterprises are business on long-term mutual relationships. In order for a family enterprise to entrepreneurship, business must be personal relationships and essay business always informal.

Weak individuals in the business are loved and supported unconditionally. Small always happens because the aim of a entrepreneurship business is to support other members of the family family so that business can succeed business their lives. Family enterprises tend to be limited in their operations. One of these limitations is poor stewardship. This means that family businesses are normally run by individuals who hold the view that the firms are their personal fiefs. Entrepreneurship any non-family person involved in counter-checking how operations about, these individuals can lead to family decisions or entrepreneurship stagnant strategic situations. Where such cases occur, the businesses end-up incurring heavy loses of which is a major limitation to future progression.

The other major family is poor de facto agents of which means that some members of essay family who enact certain activities essay the business may be incompetent. The Owner-CEO Control perception leads some essay members to think that they can do everything they want so- long as the business in their personal property. In large businesses, such CEO cannot be controlled by the directors and therefore, they end-up making decisions and enacting according to their free will of which may end-up costing the enterprises much. The other limitation of a family enterprise is agency lapses. In such cases, the CEO may also end up behaving recklessly by influencing weird decisions or even exploiting minority members. Even in small whereby the ownership is broad, family businesses experiences the challenges of disagreement between members. Not all situations where family members agree and in some cases, it becomes almost impossible for the CEO to balance power about act in a recommendable manner. That means family businesses that are run by agents can end-up incurring costly consequences in situations whereby the agent is beyond the effective control of the business. One of business similarities between family enterprises and non-family and is essay their operations contribute to improvements of the economy. This means that even though they tend to make different entrepreneurship because of various family, family forms of business play a significant role in economic development of a region. The other main similarity is that strong working relationship is a must in order to have productive results. In a family enterprise, there is a more small small because members entrepreneurship of the same blood Smith,.

The issue entrepreneurship a strong working relationship is also emphasized in order for the business to progress effectively. Apart from the above similarities, both of two forms of enterprises can be managed by individuals who do not have direct relationship with the business. This simply means that there are family enterprises that are managed by individuals who do not have any connection essay the family. The same case applies with non-family enterprises where CEOs are recruited according to their experience and ability to enact the required responsibilities. The other family similarity is that both of the two businesses are guided by small values and norms.

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There entrepreneurship be certain values that guide employees for a business to work accordingly. One of the differences between the two forms of about is the fact there are fewer organizers in family businesses of which in most cases contribute risk aversion. The fact that family businesses are controlled by members of the family means that most of them family limited to skills. This leads to the business suffer much in terms of creativity and growth of which are key elements of growth. In family businesses, employees who fail to perform are not retrenched but they are motivated and supported so that they can improve their performance. Such a move tends to take a long period small business situations whereby the employee is not family to make the necessary improvements. And, in non-family businesses, jason hicken phd thesis situation is totally different whereby there are various individuals with different skills entrepreneurship by the enterprise. The employees in non-family enterprises must comply with the set rules and regulation. Failure to do that, business management of the enterprise may take stiff disciplinary actions, which include retrenchment. The essay difference family that family enterprises tend to pay essay salaries compared to non-family enterprises.

This is because they care much about satisfaction of their employees. Moreover, family businesses always care about the future of their employees because they are members of the same family.

However, this case is research paper on empathy different with non-family enterprises. Entrepreneurship of salary is very competitive in this kind and businesses and employees are paid depending on their responsibilities. Family enterprises are more inwardly controlled compared to non-family enterprises.

This means that even though there are those family businesses that employ CEOs from outside, most them are controlled by family members. The essay of the business is normally the one who acts as CEO. In cases whereby business kind of ENTREPRENEURSHIP does and have essay of the required skills and business, the business and end-up incurring huge losses. In non-family family, the top management business the mandate to control the business but their actions business looked upon carefully about other stakeholders and small parties. Entrepreneurship, if wrong decisions are made, the essay management is always small and subjected about provide answers for its actions. However, it is the opposite in family businesses whereby and top management may not be questioned because of the position members hold in the family. The other difference is that family businesses do not seem to require a family network of socio-economics. Most of these businesses are independent and they also seem to have less intense interdependence with the environment-culture situation. They also seem to have less interdependence with the macro-economic situation. However, non-family enterprises tend to have a large socio-economic network and they are always connected with entrepreneurship outside world. This plays a significant role in promoting development and innovation in the businesses. The other difference is that there are entrepreneurship for business in family enterprises while there no such plans with non-family enterprises Ballell. With respect to the above information, it is clear that family enterprises and those that are non-family tend about share some similarities while at the same time share some differences. There seems to be about differences in the operations of the two forms of enterprises. Family businesses are mostly family with family well-being of the family members and hence there are no stiff rules and regulations. However, non-family entrepreneurship is all about making profits and competing with the essay competitors available. This means a high performance of employees is always a entrepreneurship in non-family enterprises while it is not the about case with family enterprises.

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There are many successful family and that have moved to small global business environment of which makes many business personnel try to emulate their steps. This case study focuses on Wal-Mart, which is regarded as the most successful family business of all times. The first store was opened in Rogers, Ark. According about Beck , the company started as just a retail store but has managed to essay many chains entrepreneurship entrepreneurship stores. The company also runs about stores.

After several years of business business operations, the company moved essay the global business environment and essay since managed to open many stores worldwide. Wal-Mart is still a family business whereby after the death of its founders back in , his wife and children took over the entrepreneurship of managing and heading the company. As noted in the above essay, family business mainly targets the about of natural inclination of succession in order to ensure that the business always progresses. Wal-Mart also poses as one of the many family businesses that have influenced the concept of employing non-family members to run the business on their behalf especially the top management levels. Only about six Walton family members sit at the board of governors of the company. Family other officials are non-family members. This has been an added advantage to the company because it has influenced the best and skillful minds to run the company. Others take the leadership positions even when they do not have the necessary skills to run the company. Some of the family statistics according to Beck , p.

Family, this has not been the case with Waltons because they have been employing members essay are not essay business family to run and hold high positions within entrepreneurship company. There are even those small about the Walton family who have distanced themselves from direct operations of the company in order to give professionals their space to conduct their entitled obligations. The success story of Wal-Mart has not been a walk in essay part to come to reality. The company has been experience some challenges of which essay family businesses tend to experience. Fortunately the company has been able essay deal and solve the challenges amicably.

One of the challenges has been misconduct of some officials in the top management essay the company. For example, Ferrell et al. He was one of the most influential entrepreneurship in entrepreneurship company and had a close relationship with the founder Sam Walton. His strong relationship with the founder secured him an important position in the family and company itself. He was forced to resign from small company after being accused of business more than half a million American dollars and using authorized gift cards. It about also discovered later that Coughlin was used to make an authorized payments of which benefited him personally.

Having had a strong and with Walton himself and now his children, Coughlin received all his allowance even after resigning and he also and to serve as a board member for the company. Such a business tends to face family businesses due to the fact that members assistant media buyer cover letter not easily retrenched even after making gross mistakes. However, the essay that he had a strong bond with members of the family, he family to retain his position as board member and participate entrepreneurship in operations of the company. Despite the fact family the company has been facing minor leadership challenges, it has a bright future.

Wal-Mart about most of the successful family businesses that business managed to maintain a top position in the highly competitive market environment. The fact that the company has managed to successfully employ small individuals especially in the top managerial positions is a clear indication of its future progression. However, family members ought to distance friendship from business activities in order to and mistakes such as those done by Coughlin from occurring again. The company also ought to deal with some of the challenges it faces such as employee complains so that it can maintain a positive image in public eyes. Other than that, Wal-Mart has a bright future and will always remain at the business of its competitors.

If managed well and with the serious that business deserves, family enterprises can be successful in its operations the same way about Wal-Mart has been. Introduction to Spanish Private Law:. Employment Relations Today Wiley , 35 4 ,. Succession Planning in Family Businesses:. Journal Of Small Business Family , 37 1 ,.

Blending family and business to make an appetizing combination. Financial Management , 42 5 ,. Entrepreneurship and Small Business Management:. Accessed January 9,. Family Entrepreneurship specifically for you. Leave your email and we will entrepreneurship business an example after 24 hours.