Can anyone help me give a definition of a family business

A family business is an enterprise in which the capital or shares are mainly controlled by a family, and the family members hold the main leadership positions of the enterprise. The family business can be said to be an old and "short-lived" form of business organization.

American scholar Kling Geckelsey believes that judging whether an enterprise is a family business is not to see whether the enterprise is named after the family, or whether there are several relatives in the top leadership body of the enterprise, but to see whether there is a family ownership, generally who owns ** and how much.

Type. 1.Purely family-owned.

This family-owned business is all family, from the boss to the managers to the employees. This type of business is purely family-owned. This type of family-owned business is generally very small and is often referred to as a workshop.

2.Traditional family-owned business.

In a traditional family-owned business, the head of the family controls the power, and the key positions are basically held by family members, and outsiders can only be in non-important positions.

3.A modern, family-owned business.

Modern family-owned businesses are owned by the family, and the management is handed over to capable family members or non-family members. In other words, the family holds ownership and equity, but the management right is not necessarily a family member. If the family member is capable, the family member will take on the management responsibility; If a family member does not have this ability, give it to a capable non-family member.

1. Family business.

It refers to an enterprise in which the capital or shares are mainly controlled by a family, and the family members hold the main leadership positions of the enterprise. The family business can be said to be an old and "short-lived" form of business organization.

2. American scholar Kling Geckersey believes that judging whether an enterprise is a family business is not to see whether the enterprise is named after the family, whether there are several relatives in the top leadership body of the enterprise, but to see whether there is a family ownership, who generally owns the first and how much. This definition emphasizes the attribution of ownership of a business. Scholar Sun Zhiben regards whether or not you have the right to operate a business as an essential characteristic of a family business.

He believes that a family business is centered on the right to operate, and when a family or several families with close ties directly or indirectly control the management rights of an enterprise, the enterprise is a family business.

A family company refers to a family that controls a number of enterprises through sole proprietorship, joint venture, holding, etc., to form a company with the family as the core.

Since there is a certain blood relationship between the main shareholders of each member of a family company, and the existence of the company is centered on the interests of the family, the form of the company is usually a limited liability company, and its business activities are not public.

The advantages of a family business are:

1. More efficient. It is not difficult to explain the lack of ambition of the owners of family businesses that can be thoroughly implemented.

2. It is more centripetal, and the unity of natural blood relatives is more stable than that of ordinary corporate partners or investors.

3. A family business that integrates ownership and management has a better incentive effect for managers.

4. The moral hazard and adverse selection risk of managers are very low.

5. The communication efficiency of family members in the enterprise is higher than that of ordinary enterprises.

6. High awareness of corporate culture and low supervision cost.

7. The vitality is extremely tenacious.

8. Pay more attention to long-term development, avoid short-sightedness caused by financial performance pressure, and be able to develop with peace of mind and make products. <>

A family company refers to a family that controls a number of enterprises through sole proprietorship, joint venture, holding, etc., to form a company with the family as the core. Since there is a certain blood relationship between the main shareholders of each member of a family group of companies, and the existence of the company is centered on the interests of the family, the form of the company is usually a limited liability company, and its business activities are not public.

In addition, the relative lack of stability of such group of companies can change due to changes in family members. The capital-controlled company group is to ensure that the small and medium-sized capital ultimately serves the large capital by the control of the large capital, therefore, the members of the company group usually adopt the form of shares, and raise shares from the society as much as possible, and the company's business activities show the characteristics of socialization.

Due to the important position of family business in the development of the world economy, many foreign scholars have conducted extensive research on family business. But scholars do not agree on the most fundamental issue of family business, namely the definition of family business. The most classic definition is that the American corporate historian Chandler (1977) proposed that a family business should be "the founder of the enterprise and his closest partners (and families) who have always held the majority of the ownership of the enterprise".

Chandler believes that they maintain close personal relationships with managers and retain the primary decision-making power of top management, particularly in financial policy, resource allocation, and the selection of senior personnel. According to Chandler's definition, whether it is a family business or not has little to do with the form in which the business exists. Slightly different from Chandler's definition, Mikeburkart et al. (2003) define as:

A business in which the majority ownership or control is owned or controlled by a single family with the direct participation of two or more family members. That is, the main ownership or control of an enterprise belongs to a certain family, and at least one or more members of the family are actually operating and managing the enterprise, which is a family business.