COMM 320 Chapter 10: Entrepreneurship Chapter 10.docx
Document Summary
90% of all the businesses in canada and the u. s. are family owned: are reported to be 1/3 of the fortune 500 list of large firms. Family business: defined as a business in which 51% of the business is owned by a single family; at least two family members are involved in the management activities, and transfer of leadership to next generation is anticipated. Issues related to overlap between functions: problem of carry-over: Tension and conflict from one function tend to carry over to the other. It is difficult for family members to separate the roles and rules of one function from the other. This problem occurs a lot during the succession process: forming one"s own identity: It is difficult for the offspring to develop their identity separate from the family. Offspring usually craves autonomy and tries to emerge from the founder"s shadow.
