How Corporate Governance Plays An Important Role In Managing A Essay

How Corporate Governance Plays An Important Role In Managing A Successfull Family Business PLC In The Long Run - Essay Example According to some survey, at present in many countries family businesses account for as high as 90 percent of all the enterprises situated in those nations. On average more than 75 percent of all the companies in the world are family owned. In Europe, the share of family business at aggregate industry level is more than 70 percent. This kind of dominant presence of family businesses in all over the world, has forced a number of people to argue that in any society across the world the most substantial economic force is nothing but family owned or controlled businesses. The dominant presence of family businesses in a large number of industries, however, does not come as a surprise. In fact, it would have come as a surprise, had it been found that in certain industry family businesses were encountering significant difficulties while making their entry into the industry. The abundance of family controlled or family owned businesses in any industry at any part of the world is actually a common phenomenon because of the reason that in any industry a new business is generally started by some common friends or a group of people within a family to give shape to their common ambition. Whether a firm started as a family business will continue is a family controlled firm on long run, is, however, a quite different issue. Whether a firm will choose to be a family owned firm only even in long run, or will restructure its ownership pattern to become a non-family owned firm depends on a number of factors including the pattern of internal development of the firm, the capacity the family ownership in handling various management issues, and numerous external factors like the pattern of market developments. Very often ‘family factor’ of any family owned or controlled business as a vital key to succeed in its business endeavors. However,