Family Business - Research Paper Example

Critical Issues Involved Within Family Business In accordance with survey report of KPMG (2009), it has been observed that family businesses mainly deal with such features or aspects that are unique to their business. Therefore, there exist certain issues with regard to the accumulation as well as the preservation of occupational assets along with wealth by implementing and applying various measures. Family business also entails issues such as management, ownership along with governance. Succession planning, growth and progression are also pertinent issues that are being faced by family businesses.

Compensation issues related with reimbursing the family members is also a matter of concern as it creates a significant extent of problem within the management of family business. Another prominent issue that depicts rivalry among family members or siblings also creates a hurdle in the growth and the development of the family business (PWC, 2012; CBIA, n.d.; ICFIB, 2009; KPMG, 2009; Mass Mutual Financial Group, 2007). In the opinion of the survey report published by ICFIB (2009), it has been assessed that issues with regard to governance is a primary problem of family business. . e selection of appropriate member for a designated position in the organizational hierarchy is at times not done which results in creating an issue with regard to fairness as well as justice.

In the survey report, it has been further revealed that family businesses do not maintain or inculcate written documents concerning employment policies. Communication gap and conflicts within in-laws are issues that have been recognized through the survey in the above article (PWC, 2012; CBIA, n.d.; ICFIB, 2009; KPMG, 2009; Mass Mutual Financial Group, 2007). According to the survey report of Mass Mutual Financial Group (2007), it has been taken into consideration that labor costs, estate taxes and health care costs are certain issues that arise within family business.

Furthermore, it has also been ascertained that family businesses mainly rely upon their close associates for assistance and advise which at times creates a major issue in terms of rivalry within family members. In the opinion of PWC (2012), it has been determined that in family businesses there are issues related to taxation as well as accessibility with regard to capital. According to the survey report, it has been revealed that in Finland, key issues that are being faced by family businesses include staff recruitment as well as prevailing market conditions.

The reviews and the survey reports depict the current prevailing issues within family business that are affecting the growth and development of the organizations. Family businesses are executed worldwide inculcating common issues within its system (PWC, 2012; CBIA, n.d.; ICFIB, 2009; KPMG, 2009; Mass Mutual Financial Group, 2007). Mitigating Issues for Growth and Development Succession planning is a major issue within family business. In order to resolve such