Managment Issues in the Global Family Business Essay

Managment Issues in the Global Family Business - Essay Example It has been said that most family businesses do not last more than two generations and that wealth barely lasts more than three generations (Lee 2008, p.8; Paisner 2007, p.7). Paisner (2007) notes that less than thirty percent of family-owned businesses have sustained their activities for more than two generations before shifting management, and even fewer businesses have managed to maintain their activity to the third generation. This implies that thousands of family businesses wrestle with myriad issues. Successor development, management transition, ownership transfer, creativity, and future focus are some of the issues that becloud the success of family businesses. Italian Family Business presents some of the key characteristics that determine the success or failure of family ventures all over the world. Multi, the owner of the restaurant, has to grapple with management issues and fights tooth and nail to prevent Guido from taking away the family business, something that many othe r similar businesses are grappling with. A look at the major characteristics of entrepreneurial businesses illuminates some of the gaps that might have landed Multi and his family into trouble. There is an unspoken misconception that creativity is only reserved for musicians and writers. This belief is commonplace in most family businesses. In others, there is an underlying conception regarding the usual manner of conducting business. Both mindsets can stifle business creativity, which is an antecedent to innovation, making it hard for family businesses to survive beyond two generations.