My father is the Head of the company, my mum is his secretary. My little brother is in charge of production, my uncle of the R&D and quality as work in the sales department. Last Sunday, for lunch, we discussed about the future investments and the strategy to implement to double the growth of our company. Could you imagine working with your family?
A family company is a firm whose capital is in the major part detained by one or several families which founded the company. However, these structures are open to external investments when there was a takeover co-financed by banks. In France, no legal status exists for family companies.
Of course, this kind of companies have definitely assets such as motivation and fidelity from the employees who belong to the family. This is without any doubt easier to work hard and give the best of oneself when you are the direct beneficiary of the gains. This kind of motivation is perfectly visible for cooperatives as well in which employees are the shareholders.
The reasons of the involvement are not only financial but also personal: when you work for your family, you must want to feel useful and take entirely part to the project led by your firm. Without speaking about the need of reconnaissance towards other family members.
Nevertheless, drawbacks are also to be taken into consideration. It can be hard to clearly distinguish personal and professional life: a private conflict might echo on the atmosphere of the firm and have disastrous consequences. This is why an external tierce-person is often needed.
When other colleagues do not belong to the family, they can feel somehow excluded from some discussions led in the private area and then miss some information. Other reasons of jealousy or feeling of inequality – relevant or not- might cause issues that which not necessarily appear in another firm.