Response to: “Business in the Blood”
In regards to Yeqi Yang’s blog, “Business in the Blood”, she states that
“Recently a research shows that the Family-controlled firms now make up 19% of the companies in the Fortune Global 500, which tracks the world’s largest firms by sales.It seems that there is a huge success the family company has reached, and more importantly, a majority number of investors would like to believe these companies can provide them a more stable return of profit.……However, there are still many issues we should realize in terms of a family firm.”
After reading this blog post, I am enticed by how the blogger’s tone changes, her tone changes dramatically from referring a positive research, to emphasizing the advantages of a family business, and end up with pointing out the fatalities of a family business.
However, I am more than happy to share a new aspect with Yeqi Yang, as not only do families businesses have an unparalleled competitive advantages, they also have a better chance to win the game among the competitive market nowadays. For example, the article “Why Family Businesses Are Best” mentions a real story ‘“We’re absolutely faster,” says Crystal Ettridge, who with her brother Steven has grown Temps & Co., a Washington, D.C., temporary agency, into a three-time Inc. 500 company with current billings of $32 million. “We have a telepathic relationship. We don’t waste time.”’
Understanding the theory of “the rich get richer” and “money follows money” in such a materialistic society, we know that most of the rich people’s children are highly educated and trained to be a businessman, as well as they have more resources, networking and opportunities along the way they pursue their goals. For instance, another Sauder’s blogger Oguz Can Genc explains why money has absolute power in the first paragraph in his/her blog post “In repose to the Liz Koh’s Money and Power blog post”.
Having such strong financial support, knowledge and operation culture, the family-business candidates are more easily to take over the businesses from their parents or families, and lead the company to a much higher level. In comparison to regular business candidates, the family-business candidates have a tighter relationship to the business, and have more responsibilities and initiatives to the business. All qualities mentioned above making a family-business candidate become successful more easily and pass on what they have to the next family-business candidate.
sources:
https://blogs.ubc.ca/yeqiyang/author/YeqiYang/
https://blogs.ubc.ca/ocgenc/
http://www.theguardian.com/commentisfree/2014/mar/17/five-richest-families-prove-theory-money
http://www.inc.com/magazine/19920301/3973.html
Image:
http://www.ey.com/Media/vwLUImages/Family-business/$FILE/Family-business.jpg
https://fbcdn-sphotos-e-a.akamaihd.net/hphotos-ak-xaf1/v/t1.0-9/10698497_856670277677817_5156929786337269314_n.jpg?oh=a28d0c07ccc02f24e85ca7aceb8413ef&oe=54D90660&__gda__=1423278289_31cdef378dcc450bc717d25374b6da8d