Family Business

A family business is not a capital company but an establishment founded by a family and directed by family members. Family members have a voice in taking decisions relating to the establishment depending on their authority. At least two family members should be in this company in order to classify the same as a family business.

A family business has a great advantage since significantly important decisions can be taken by members of a single family. Problems can be solved quicker in comparison with other types of business. Being accustomed to each other in social life is another important advantage in terms of common cultural values.  

Despite such advantages a family business has also several disadvantages; the most significant of which is the uncertain limits of authority. Those having a voice in the management of the establishment try to gain advantage over others; which is one of the most dangerous threats against the business. In addition, differences between generations may impose either some advantages or disadvantages depending on the nature of the business. Jitna solves problems which should not exist in family businesses; also assist them in maintaining their continuity and determines limits of authority in accordance with the prime contract of the establishment and applicable legislation. Task assignment and delegation of authority between the members of next generations are carried out in accordance with such prime contract.

Jitna 2020