Family business is the type of business which is managed and owned by a single family and the period of ownership lasts for several generations. It is obvious that family business is the most ancient from of business, because every business was hereditary and the ownership transferred from generation to generation. Every shop, workhouse, factory, farm belonged to a certain family and the following generations had the duty to develop their family business further. With the run of time the model of family business divided into several directions and other forms of business appeared.
Nowadays there are still firms which are run by families and the most well-known and profitable companies are Walmart, Samsung Group, Tata Group, etc.
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Family business is a complicated type of running a business, because there are its own positive and negative sides. The positive side of family business is the fact that very family member is interested in the development of business in order to receive higher profit. Moreover, it is better to discuss the new strategies of development and important decisions with the closest people who would help, criticize and support the idea objectively. The only negative side of family business is the probable lack of qualification and professional skills among the members of the family who receive high positions. For example, it is wiser to employee a non-family experienced manager who would work better than the inexperienced and unskilful relative. Finally, there are often quarrels between the members of the family who want to have the entire rights for the control over the business and if there is rivalry in a family, the development of such a business is under the risk of failure.
Family business is the ancient form of running a business which can be met even today. The student is able to develop his knowledge on economics and management and prepare a quality research proposal which would observe the issue from the alternative and brand new point of view. The student should concentrate on the creation of the proposal which would present the definite theses statements and questions chosen for the research and a brief plan of its writing. The young professional is asked to concentrate of the methodology of the research and find the reliable sources on family business which can be used for the successful research.
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