Some People Think That The Best Way To Run A Business Is Within The Family | Band 8 IELTS Essay Sample
Some people think that the best way to run a business is within the family. What are the advantages and disadvantages of a family-run business?
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Band 8 IELTS essay sample
Family businesses are quite popular in many countries. While some people believe that they have a higher chance of success others argue that this method will lead to many problems in the future. In my opinion, family businesses have certain pros and cons which will be discussed in the following paragraphs.
Integrity and profound loyalty are the major advantages of running a family business. The family members will always stay together during any ups and downs of their business rather than quitting from the existing business during the non-profitable stage. In addition to that, the young generation born in the business family is more familiar with the planning, human resources management, sales management, and financial management. Therefore, they are capable enough of running the business in any circumstance. All the members will always work hand in hand for a common goal. The business profit and losses are distributed among the family members according to stipulated terms and conditions.
Conversely, the family-owned business is not always successful, because there are many disputes related to profit sharing, outside recruitment, and discussion making involved in this. For instance, the young generation is more likely to be irresponsible and immature. Sometimes family members are not truly interested in joining the family business but do so anyway because it is expected of them. The result is apathetic, unengaged employees.
To conclude, a well-defined family-owned business will thrive for a long period. However, the family that runs their own business must ensure that disagreements between family members are resolved before they turn into a business crisis.
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Many businesses are run by a family in the world. While some people believe that family-run businesses are more successful, others have different opinion. This essay discusses the advantages and disadvantages of family-run businesses.
Loyalty and reputation are the major advantages of a family-run business. The family members will stay together in difficult times rather than leaving the company for a better job. In addition to that, reputation of each family member is highly dependent on the state of their business. For example, Mukesh Ambani helped his brother’s company from huge debt because he considered it a bad reputation for his organization due to same lastname. In sum, family-run business motivates all stakeholders to work for a common goal which makes it a great success.
Conversely, family-owned businesses have their disadvantages also. Family-run businesses have a lot of emotions and feelings attached with any decision. This can have detrimental effects on the success of various projects of the organization. Furthermore, the transition of family-run business from one generation to another is not smooth and cause major problems due to any schism in the family. One of the cogent examples is the decline of Jaypee group in India. It was declared as the fastest growing company in 2010 but currently it is in a huge debt. The main reason is the rift among brothers after their father died.
In conclusion, family-run business has its advantages such as loyalty and reputation, however, it can fail early due to involvement of emotions and schism between families.
This seems band 7 to me.