Management problems in a family owned business are different from the same problems in a non-family business. When relatives work together, emotions often interfere with business decisions. Problems such as control of daily operations, and high turnover rate of both family and non-family employees, can lead to the demise of a family owned company. In some companies, growth is a problem because relatives are unwilling to plough profits back into the business.
Source: Canada Business Ontario
Last revision on December 06, 2012