Family Business vs Other Forms of Business
Unlike other forms of businesses, a family business is born and not formed in Bracci. This implies that knowledge within the business is the foundation of the business and it only needs to be adequately passed over to the successors. Education is therefore vital for the successors to sustain the management of the business (Bracci 8). From an opposing view, Finch (16) notes that professionalism and education are not vital components in the effective succession of family businesses.
Globalization is offering the opportunity for people to learn the most effective ways of planning the succession of family-owned businesses (Finch 16). Through the highly integrated information technology networks available, businesses the young successors are capable of learning from experience the right succession models.
Apart from globalization, formalization of the family business management is the surest way to enhance the most appropriate succession methods (Finch 17).
Through the formalization of the family business, the whole organization is in a clear position to learn the most professional succession methods. This reduces greatly conflicts that may arise in the course of succession of management as all the members of the family are formally made aware of the policies that govern the succession in the family business.
This is in agreement to the sentiments by Bracci (7) which lay more emphasis on the fact that knowledge and information are the business’ present and future economic resource.
Having well-equipped knowledge of the policies that govern the succession and management of the family business helps the firms to move forward without raising conflicts among them.