EMBA 530 Student Replys week 9 Essay Example | Topics and Well Written Essays - 500 words

EMBA 530 Student Replys week 9 - Essay Example As for the first, the mere mention of family may be taken both as advantage and disadvantage, since it is well known that families can be either harmonious or contentious (Werbel & Danes, 2010). In money matters for instance, a family business might be in urgent need of new capital, and the best way for this is to reinvest earnings. However, other members of the family who may be shareholders but who do not participate in the management of the firm may be looking forward to regular dividends in order ‘to help support their lifestyles’ (Houlihan, 2013, p.1). Easily, families in which long-standing personal grudges are present (which is practically all families) will encounter one or two members who would express impatience or irritation at not receiving regular dividends and may pick a personal quarrel with the managing family member. Houlihan, R. (2013) ‘ESOPs offer liquidity solutions.’ Family Business: The Guide for Family Companies. Retrieved 12 March 2013 from http://www.familybusinessmagazine.com/index.php?/freefeature/single/esops_offer_liquidity/ Werbel, J. D., & Danes, S. M. (2010). Work Family Conflict in New Business Ventures: The Moderating Effects of Spousal Commitment to the New Business Venture. Journal Of Small Business Management, 48(3), 421-440. doi:10.1111/j.1540-627X.2010.00301.x Christopher’s post was extremely informative and incisive, and touched on many topics which impact significantly in family businesses. There is a bit of difficulty, however, in identifying the five specific conditions which the exercise required, and there are several conditions discussed which tended to contribute to the failure, rather than success, of the business. For instance, the mention of the increasing number of family members for each new generation as being a negative factor influencing business, appears to be more of a disadvantage than an