Family business

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Family business

  1. 1. PRESENTATION<br />
  2. 2. REASONSOFFAMILYBUSINESSES’ FAILURE<br />
  3. 3. Outline<br /><ul><li>What is the importance of family </li></ul>businesses’?<br /><ul><li>Why do businesses fail?
  4. 4. What are the main reasons of family</li></ul> businesses’ failure?<br />
  5. 5. Family Businesses<br /><ul><li>Family Business can be managed by one member of a family or by multiple members of a family who are employed in the business. </li></li></ul><li>Family Businesses<br /><ul><li>According to researches;
  6. 6. 65-80% of businesses around the world are family business.
  7. 7. 30-65% of GDP
  8. 8. 50-75% of work force</li></li></ul><li>Family Businesses<br />Figures of 2005<br />
  9. 9. Family Businesses<br />TUNISIAN ECONOMY<br />
  10. 10. Surviving Through Generation<br /> % Surviving Through Generation<br />
  11. 11. Why do businesses fail?<br /><ul><li>Global crisis
  12. 12. Foreigncompetition
  13. 13. No governmentgrants
  14. 14. Insufficient Capital and highdebt ratio
  15. 15. Instable economy
  16. 16. Bad location and bad transport links
  17. 17. High Taxes and interest rate
  18. 18. High exchange rate
  19. 19. Unskilled staff ….</li></li></ul><li>Why do businesses fail?<br /><ul><li>Poor management and no business plan that includes management, marketing, production and financial strategies
  20. 20. Culture and personalities clashes
  21. 21. Bad network
  22. 22. Conflicts and lack of communication
  23. 23. Overexpansion and no creativity
  24. 24. No innovation and badqualityproduct</li></li></ul><li>Family Business’ Failures<br /><ul><li>Family business’failures were not often the result of market or macro enviromental forces.
  25. 25. Family business’ failure reasons generally occur from family and management issues.</li></li></ul><li>Lack of Succession Planning<br /><ul><li>In many cases are compulsory successions
  26. 26. Next generation lacks essantial skills and experiences
  27. 27. Next generation have not been well prepared for job
  28. 28. Lack of credibilty</li></li></ul><li>Employing Children <br /><ul><li>Employing children according to sex and age status
  29. 29. Oldest son for most important and critical position
  30. 30. Daughter for basic or not so important position
  31. 31. Ignoring abilities and management skills
  32. 32. Occure clans and coalition</li></li></ul><li>Young Members’ Behaviors<br /><ul><li>Dont change their behaviors (during transition period)
  33. 33. Disagree with new rules and are impatient
  34. 34. Generation gap
  35. 35. Restrain young members’ activities
  36. 36. Look at parents as an oldfashion</li></li></ul><li>Old Members’ Behaviors<br /><ul><li>Parents:
  37. 37. Cannot recognize that second or third generation members are old enough
  38. 38. Do not want to be out of game and loose control, refuse to step down
  39. 39. See their children as their competitors and don’t accepte changing
  40. 40. Are tied to tradition and finddifficult to adapt
  41. 41. Do not want to see external people in company </li></li></ul><li>Deciding who willbe involved in family business<br /><ul><li>If more than one candidate, parents haven’t the abilityto choose right family member for right position. They have to decide who will be in, who will be out.
  42. 42. Theycan’tseperatefamily’smattersfrom business’ matters
  43. 43. Parents force children to involve in family business. They do not pay attention what their children want to do.
  44. 44. Competence canbe out the family
  45. 45. Damage relationships between family members</li></li></ul><li>Unfair Promote or Assignment<br /><ul><li>Makes other employees disappointed
  46. 46. Decreases their willingness
  47. 47. Ignoring experience, skills, abilities, and education
  48. 48. Damages corporate identity
  49. 49. Favouritism & selfishness</li></li></ul><li>FraternalFightings and Estate Conflicts <br /><ul><li>According to researches, the biggest two reasons were fraternal fightings(43%) and estate conflicts(19%).
  50. 50. Conflicts between family members in </li></ul>and out of the business and with non-family members<br />
  51. 51. QUESTIONS ?<br /> monem.agrebi@yahoo.fr<br />
  52. 52. Thank you for your attention <br />For your precious time & patience!<br />

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