The family-held and run businesses are the traditional and most prevalent form of business in India. Family businesses are the backbone of any company’s economic growth and prosperity. As per the survey conducted, more than 80% of the companies in India are family-owned. In India, keeping businesses among is a continued practice for ages. India delights in a rich and glorious history of family-owned businesses.
Initially, India started a family business in exchanging and cash loaning, including hurrying around the market. It is also confined to people of certain communities. Notably, the Gujarati and Marwari’s, particularly in western and northern India. Today, As per the report, family business almost contributes around 80 percent of the national GDP yearly. According to various estimates, more than 80% of the companies in India are family-owned.
Another advantage of maintaining a joint family business would be the straightforwardness in making hazardous choices. There are no conflicts between your advantages and hierarchical interests. Be that as it may, you ought to have a solid rationale behind it when you make an unsafe choice. In any case, the current framework will most likely be unable to adapt to it.
The myth is family-run businesses are not able to cope up with the increasing advancement and technologies. Still, as today’s generation steps in, family businesses hence benefit from entrepreneurial spirit and flexibility. The family-run business and joint family business are well known for the ethical practices considered while doing business. When a family business has a clear vision and mission, open coordination, well-defined tasks, and transparent systems of day-to-day activities, then the business can survive any test of time. Another benefit of a family business that you can easily trust your family member. Loyalty is the foremost factor here.
Also, read Role of Ethics in business
5 benefits of doing family business
Stability
the joint family business is ideal as they are faithful to the organizer’s standards and top administration, which brings about in general steadiness inside the association. Pioneers generally stay in the situation for a long time until a day-to-day existence occasion like disease, retirement, or demise brings about change.
Responsibility
There is a more noteworthy feeling of responsibility and responsibility by all relatives because of the inclusion of the whole family’s notoriety stake. This degree of responsibility is practically unthinkable in non-privately-owned companies. It is characteristic that all relatives show and offer a degree of obligation to the firm since the center of any privately-owned company is a common business vision and personality.
Administration
More often than not, in a family-run business, a citation is focused on the senior of a great many people in the family. So every relative shows confidence and dependability in the top administration.
Trust
Since all relatives know one another and are related by blood relations, there is trust.
Adaptability
In a family-run business, all relatives can play any job which the business needs. You will not hear, “Heartbroken, this isn’t my work” in a privately-owned company. They can take a few unique errands outside of their proper part to guarantee the organization’s achievement.
Diminished Cost
All relatives contributing area, work, capital, and business implies there will less cost of running and overseeing the business. In tough situations like the coronavirus, relatives even can accept a decrease in salary or work with no compensation.
Need for planning
Every business, either a private company or a joint family business, always requires successful planning to achieve goals or long-term objectives, remain competitive in the market, earn a good return rate, and ensure a business’s going concern in the long run. Successful planning is required for handing over the business to the next generation and minimizing the generation gap.
Conclusion
We have seen many business failures due to misunderstandings and communication gaps and when a business’s objective is not clearly defined. Every business either solely handles private or family business first. You must ensure successful planning. Your goals, mission, and vision should be clear. Your family members form part of the business. All of you must have open communication.
Every member must give equal contribution when performing operational tasks and have common objectives. So that your upcoming generation enjoys fruit and becomes part of your business in the future.
