Family Business

1028 WordsJan 22, 20135 Pages
Family business are businesses that are created from their founding fathers of that era, if may evolve from small businesses into big enterprises. Family business is playing a very important part in the economy of Malaysia; the reason is that more than half of the Gross Domestic Product of Malaysia is from the family businesses that are conducted in Malaysia. For example The Genting group and The Berjaya group are two of the most famous family businesses that are conducted in Malaysia. The following are the issues and challenges that are faced by family businesses in Malaysia. The first challenge and issue that affects family businesses in Malaysia is succession planning which is choosing the next successor for the business after the…show more content…
The fourth challenge and issue that affects the family businesses in Malaysia is leadership which is basically the compass for the direction of the family business. It is very hard for family business to have good leadership because it involves leading, involving, and also motivating the people in the family business so that they share the same goal. So, if the leader of the family business is strong, then the chance of the business to succeed will surely be very high. The first thing is that the good leader must have the stamina and the passion to lead. Besides that, the leader must have a wide knowledge of the economy and also the industry itself so that he or she can direct a most beneficial way for the family business to approach and also giving a sense of common purpose. Lastly, the leader must have power to control the people in the family business and tell them what is the plan and what they need to do. The last challenge and issue that affects the family businesses in Malaysia is fair compensation which also includes fair treatment to the people involved in the family business. The reason why this is a common issue in family business is because that the family members always tend to treat their own family member better and they also make bias decision most of the time. The most common problem is the payment and the salary of the people in family business. People who are the family member often
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