Table of Contents
CONCEPTOF FAMILY BUSINESS
Family business is not a new term. It is very common all across the globe. First of all, at this point, let me tell you that various terms are used interchangeably for family business. They are family-owned business, family-controlled business, family-managed business, business houses, business groups and industrial houses. Any of the said terms used in this unit may be considered as family business. Different people view family business in different ways. For some, family business may mean traditional business while others may view it as home based business or community business. Family business is a business (commercial organization) in which two or more family members are involved and major ownership and control is vested within the family. Decision making in this kind of organization is influenced by many generations of a family, by family members we mean a member (sane) related by blood, marriage or adoption. These members should have the ability to influence the vision of the business and the willingness to use this ability to achieve a higher goal. It is important to understand here that family business does not mean owner-manager entrepreneurial business organization. To be a family business, the element of multi- generational dimension is a must. Because of this multi- generational dimension, there is a unique dynamism in the organization. Family businesses are the form of organization which is quite dominant in India. They are in all sizes from small business enterprises to large multinational business organizations and in all sectors from agriculture to industries to services.