Family owned business
in USA
There are 90 percent of
business in United States of America are owned by a family business. Based on
my observation, in operating family business, there will be more trust, but the
arising percentage of the conflict is higher in family business. The family
business institute states there are only 12 percent of family businesses that
can survive after the third generation of the family.
It is more complicated and
challenging to managing finance in family business.
Family business is not
required to have all the member of the business should be from the family
member, usually the family member in the family business be the top manager and
includes the owner. However, the participation of family member in the top
board could help the company for the long-term growth. The usual issues why the
family business is collapse, is because the individual wealth maximization.
I will take Cargill Company
as the example of the family business. This family business was founded at
1865. The family member controlled the executive position in this company for
almost 100 years until there is a non-family member becomes the one of the
executive member in Cargill Company during 1960. However, this company still
could success in achieving their goal in the long-term period. Cargill company
do not suffering a conflict in their business since this company founded.
There is an opportunities of
Cargill company to take, which is sales their shares to the public in order to
increase their capital to make an expansion for their company. However, usually
family business is closer rather than normal business, because they are more
trust to their family members. To conclude, I think Cargill family business
company should transparent to public and start selling their shares since they
are a successful company and it will bring big potential for the investor and
finally they can make the strategy for their future plan. In the case if I was
the investor, I will dare to buy the shares in Cargill company, because I can
see this company already success since a long time ago and they still can
survive with the current condition market.