Entrepreneurship and small business management Essay

Entrepreneurship and small business management - Essay ExampleOn the other hand, they also prize that such decision-making may just be beneficial to the business operations. One good thing rough them is that they play a critical role in global economy. as yet so, one should understand that family businesses be managed in different styles especially as pertains to leadership. Their characteristics ar largely similar although small variations exist. Such differences are what sum up the total picture that of what constitutes their alone(p) features. Unique Characteristics of Family Business As mentioned above, family business has unique characteristics. According to Bassanini, Breda, Caroli and Reberioux (2013, p. 433), family business are characterized by low job insecurity. Bassanini et al. observe that unlike nonfamily firms, family businesses are non in the habit of laying out workers. Rather than downsize by dismissals, many of them ladder to rely on not hiring. They respon d to their business operations through this unique way. This does not imply that family businesses will neer lay off workers. In the US, family businesses account for up to 28% in 2007 while Germany has the luxuriouslyest number at 56% (Boom, Van and Reenen 2007, in Bassanini et al. (2013, p. 433). Bassanini et al. observe that many family businesspeople see their firms as future assets for their posterity (p. 434). As a practice, any of them nurture their kids for eventual takeover and management. Some do not get married that path but entrench family members in critical decision-making organs. Probably this explains why many of them are loth to lay off their employees. Bassanini et al. also note that many family businesses pay comparatively low or mean(a) pay as compared to non-family firms. They offer that one may attribute such differences in wages to the incident that there are differences between family and nonfamily firms. Comparatively, the scholars point out that the wage gap between family and nonfamily gaps is approximately 2.4% (Bassanini et al., 2013, p. 443). Even so, one should understand that this rate is not fixed as it fluctuates. One can also extrapolate that the differences between wages in family firms and nonfamily firms vary largely from firms to firm, making the percentage difference a self-propelling range. Other scholars observe that family firms tend to follow certain value held dear to them. They note that family businesses thrive on strong commitment to stewardship of the familys assets amongst others (p. 39). The scholars also observe that as the family shareholder decide on institution of Family Entrepreneur Teams. They also assess the shared vision to be in business together (Cruz, Howorth and Eleanor, 2012, p. 39). This is patronage the fact that they are first brought together by shared family values. From this observation, one may deduce that another(prenominal) characteristic of family business is that the success o f family business lies on the continued goodwill on the shared values down the lineage. It appears that as much as family businesses are characterized by shared values, down along the multiplication lines, there may be deviations from the shared values. Another characteristic of family teams is that the level of flexibility is usually high (Schjoedt, Monsen, Pearson, and Chrisman, 2012, p. 7). Schjoedt et al. highlight that such a characteristic usually comes from the fact that many team members in family businesses tend to be couples. Being couples, Schjoedt et al. point out that the shared goals and strong relationships usually allow some spend a penny of