Let’s take a look at ten of the most common challenges facing family businesses today in the MSME Segment in India.
Family problems. Physical, emotional and financial problems among family members can greatly impact the day-to-day operation of the business.
Informal culture and structure. For many businesses, having a laid-back culture is a positive. However, the informal structure and culture found in many family businesses can equate to a lack of documentation, policies, and defined strategy and goals.
Pressure to hire family members. It can be difficult to resist the pressure that comes along with requests from family members who want to join the business. This becomes especially complicated if they lack the basic skills and experience needed for the position.
Lack of training. The informal culture found in many family businesses can result in a lax approach to training new employees, whether they are family members or not.
High turnover of non-family employees. Non-family employees may feel that greater opportunities exist within the business for those who are a part of the family and may grow tired of the culture.
Sources for growth. A huge challenge for family businesses can be determining where and how to get the capital and resources needed to grow the business.
Lack of an external view. While family members may not always have the same opinions, they often have similar upbringing and life experiences which may lead to a uniform view of the business. Businesses need to have external views of their company and their competition in order to thrive.
This story is from the September 2020 edition of Small Enterprise.
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This story is from the September 2020 edition of Small Enterprise.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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