Advantages and Disadvantages: Doing Business

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one who is qualified to inherit. Other family peers will be dissatisfied and have negative emotion which causes negative impact on the business. They may find other ways to destroy his reputation. (Metcalfe 2011) There tends to be fighting and hating one another. In addition, the lack of the outsiders who are able to manage the company is another drawback. Although some outsiders are employed, they cannot be leaders or achieve the right to make important decisions in company. Sometimes, outsiders have useful and creative ideas for the business, and may have better ability to organize the company than the family members. However, they have no chances to offer suggestions because the top leadership must be the family members who own most of the shares and rights. This kind of mode will cause the loss of the talented and ambitious people.

The quarrels among the generation and the lack of outsider are the major problems. In this business mode, some effective measurements can be taken to solve these issues before they occur. Elders should be fair-minded to everyone because they have the same opportunity to compete, and therefore a justified competition platform can be provided in company. In this way, the generation can show off their skills which can substantiate their strength. Each generation needs to work hard and balance their failure and flat mentality. They should face their weakness and improve themselves from their sisters and brothers. The company should also be opened to public, especially to the ambitious and talented people who can make progress in the company. Providing the opportunity for advancement is an excellent way. Although the major right and decisions are made by family members, it is necessary to choose outsiders take on a leadership role if they are more qualified for the position.

The vast majority of firms are family business, and they account for a significant percentage of most countries’ gross domestic product and offer numerous working opportunities. Family members trust each other and have loyalty, which are beneficial to the quality of work. Importantly, generations have a prosperous working future. On the other hand, jealousy and fight could be aroused because of issues in inheritance, and the business could lose elite resources without opening to outsiders. To deal with the problems, suitable platforms and careful selection of qualified people could prevent issues. All in all, starting a family business owns its merits and drawbacks.