Fast FAQs

What are the most common problems with family businesses?

Personal conflicts often cause problems in family businesses. For example, one family member may feel that another isn't pulling his weight, family members who work for the business may resent interference from other family members who don't, or two family members may simply dislike each other.

Brothers and sisters may feel that they are being unfairly treated, particularly when a younger sibling is more senior than an older one. There can also be tensions between different generations. Problems can include a parent wanting unwilling children to take over the business, or a 'retired' parent continuing to interfere.

Other employees, who are not members of the family, can resent any favouritism (real or imagined) shown to members of the family.

Of course, family businesses also face all the commercial challenges of any business. These can be made more difficult if the business has become set in its ways, or simply lacks the management expertise needed. Family businesses can find it difficult to grow if the family are unwilling to involve external investors or management.

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