CHALLENGES ASSOCIATED WITH FAMILY BUSINESSES
HERE ARE 15 CHALLENGES ASSOCIATED WITH FAMILY BUSINESSES 1. Emotions Usually family problems like divorce, separations, health or financial problems create difficulties for family members which end up affecting the business. 2. Informality This takes the form of absence of clear policies and business norms family members. 3. Tunnel vision There is a challenge of limited outside opinion and diversity on how to operate the business. 4. Challenge of compensating family members Dividends, salaries and compensation for non-participating family members are not clearly defined and justified. 5. Role confusion The roles and responsibilities for each member are sometimes not clearly defined. This results into overlapping of functions. 6. Poor managerial skills There is hiring of family members who are not qualified, lack skills and abilities for the organization. In addition, it also becomes difficult to fire them even when it is clear that they are not working out. 7. Inadequate successio...