Analysis of the family business and advices for solutions

Abstract

One of the most important establishment purposes in family businesses is to leave a family name that will be passed down through generations. However, family businesses face many problems in this regard and these problems threaten their family names. There are various internal and external factors that affect the continuity of family businesses. The external factors in question; It consists of parameters related to environmental conditions such as market conditions, economic situation, political stance, foreign market and domestic market. However, the main problems in family businesses seem to be internal rather than external factors. This problem, like having an emotional identity at the beginning, is also seen to be caused by some characteristics of family businesses when looked carefully. When the reasons for these factors are examined, the personal characteristics of the founders and the family and business values that the family business grasps and owns, role conflict, transfer process, disagreement, etc. It has been seen that family businesses are an effective way on continuity and sustainability.
Family businesses mostly consist of family members in management. In family businesses that reach a certain size, it becomes a necessity to have a professional manager. However, family businesses have difficulties in recruiting professional managers. Because professional managers will not want to take part in such an institution because of conflicts and disagreements in family businesses. Professional managers must remain committed to businesses in both the family and business environment. For this reason, it is known that professional managers are not very open to job offers from family businesses in their business portfolio. The efficiency of the management and the success of the business in the long run will only be possible if family member managers and professional managers can work together and jointly create a mission and vision.