Family Business Essay example

2358 Words Jan 11th, 2014 10 Pages
Family business is a business in which, one or more members within the management team are drawn from the owning family. Family businesses can have owners who are not family members. Family businesses may also be managed by individuals who are not members of the family.
However, family members are often involved in the operations of their family business in some capacity and, in smaller companies, usually one or more family members are the senior officers and managers. Many businesses that are now public companies were family businesses.Family participation as managers and owners of a business can strengthen the company because family members are often loyal and dedicated to the family enterprise.
However, family participation as
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Understanding of “family businesses” in the national context

In Germany family enterprises are defined as enterprises where the owner or a member of the owner family also manages the enterprise. Condition is that the person or the family in question holds at least 50 % of the votes of an enterprise. These enterprises are called “Mittelstand”.
There is a so called wider definition of family enterprises. The term of control is the same but it is not necessary that a member of the owner family manages the enterprise.
The manager can be an external person.
So a company operated and owned by a single person will always be considered as family enterprise. Sole proprietors are always family enterprises as a sole proprietor always controls the whole enterprise and is by law the only manager of his business.

While in our country (Macedonia) it is quite different.

It should be pointed out that in Macedonia, both among the policy and the academic community, a consensus about what can be considered as a family business does not exist. Family members involved in a certain type of business activity within a legal entity can be considered as the most common definition for family business in Macedonia. There is a need to identify precisely which and how many family members should work together in order certain economic activity to be considered as a family business. However, this has been another area of

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