Factors that influence the longvity of family-owned businesses.

Abstract

Have you ever noticed why some family businesses can operate their business for more than 50 years but some operate their business for just a short period of time. There are 3 components in the family business which are family, ownership and management. Family business is different from normal business, family has been involved in the management and ownership of the business which can provide unique challenges and opportunities to the business. The purpose of this this research is to explore what is the factor that influence the longevity of family-owned business. The research finding shows that there are 2 main factors that influence the longevity of family-owned business which are family factor and business factor. These 2 main factors can separate into 7 factor including successful succession process, employee-oriented firm, family-control in executive decision making, non-family members within the management levels, long-term company plan, separating a family and a business out of each other and maintaining good relationship among family members.