Family-owned businesses offer some surprising benefits to their clients. Here are the five reasons why entrepreneurs should rather do considering conducting business with a family-owned business other than with a large company.
- Family-owned businesses have a better strategic continuity. Members of the management team often grow in their jobs while other employees often work their entire career at family-owned business. That is why the corporate culture is often stable and social. This has a positive impact on the quality and quantity of the services provided.
- Stable finances. Family-owned businesses often use their equity to grow. They acquire less debt. This habit allows them to have a stable growth.
- Direct and good governance. Although family-owned businesses often lack a formal structure, the short lines of communication and trust ensures that decisions can be taken quickly. Backstabbing is no part of the culture at a family-owned business.
- Family-owned businesses have a close relationship with the local community. Family-owned businesses take pride in their role as employers and the impact they have on the (immediate) surroundings. They are loyal towards their employees and do everything possible to minimize the impact of their activities on the environment or communities living nearby.
- Family-owned businesses are very flexible. The short lines of communication allow family-owned businesses to invest, act faster or be pro-active to mitigate possible problems. They are less affected when employees retire or resign.