Understanding the Family Business

The purpose of this book is to provide readers with an introductory overview of family business, the most prevalent form of business in the world. The differences between family and nonfamily businesses are emphasized in this book. This book has several key audiences and can be used as a supplemental text for university undergraduate or graduate level courses such as small business management, introduction to business, entrepreneurship, or family studies. Members of family businesses will benefit from the book as an introduction to the unique nature of family businesses. Professional advisors to family firms, such as accountants, attorneys, bankers, insurance providers, and financial services professionals, may develop a better understanding of their clients. Suppliers to family businesses will gain insight to this important business customer. Much of the literature on family business is from the United States; an attempt has been made to present relevant international information as well. Chapter 1 defi nes and provides an overview of family business. Chapter 2 explores the many differences between a family-owned business and a nonfamily-owned business. Chapter 3 explores the major family business theories. Chapter 4 discusses how family fi rms make business decisions. Chapter 5 explores the signifi cant issues prevalent in a family fi rm. Chapter 6 explores the most problematic issue in family fi rms: succession or the transfer of ownership to the next generation. Chapter 7 focuses on effective family business governance and use of advisors and boards. Chapter 8 explores key success tips for long-lasting family firms. Chapter 9 discusses trends and further research in family business.