Why is family businesses not common?

[Fidelia]

Currently, family businesses are not managed traditionally, but have become corporations or limited companies, where the family is only the majority shareholder. So there is no commotion or fighting as you might imagine. Several well-known family businesses such as BMW, Walmart, Ford, Samsung, Nike etc.

I think that this separation of ownership of family businesses from the management of it helps to calm nerves that could have escalated because of different positions in business decisions.

 

[Suba]

I think that this separation of ownership of family businesses from the management of it helps to calm nerves that could have escalated because of different positions in business decisions.

What I mean is not separation of ownership of family business, but capital divided by the number of families so that it is considered as business participation capital and profits will be divided according to the capital participation.

 

[Augusta]

Family business are seen but very rarely, my uncle started doing it but there were too much misunderstanding seen between my uncle and his close relative.

Yes it comes with a lot of interference from extended family. You can't run it just the way you want.

 

[Starmix]

Even if there is interest of the family but absence ofva huge capital is what drives the family not pursue their dream business.

 

[Augusta]

Family business comes with a struggle. A lot of people are involved and running it might always need their inputs

 

[Xtynehappy]

That's because most family businesses don't go further before they collapse due to the constant
family issues.

 

[Min George]

The Gen Z people are pursuing careers in less conventional fields like social media and are not interested in doing family businesses because it looks traditional.

 

[neku]

In some countries the income of business owners has drastically declined in the last decade, while the income of salaried employees has greatly increased, so few want to do a business.