Over 60% of all business in SA are considered to be family businesses and 75% of all small businesses are family businesses. It is estimated that family businesses employ over 55% of the total private sector work force. Many businesses are unaware that they are family businesses.

A family business is defined as a business where two or more family members work in the business and share or expect to share ownership, and want to pass ownership on to the next generation.

Family Businesses Issues

In addition to the ordinary challenges of running a successful business, family businesses share some specific issues as they prepare for the future. They must manage complex relationships of family and business, and they must work towards a generational succession that respects both family needs and business realities.

The issues they face can include some, or even all of the following:

• Work-life balance with the business infiltrating into all aspects of family life
• Facing up to family/emotional issues such as rivalries, grudges, jealousies, favourites, personal relationship breakdown and so on
• Unrealistic assumptions of differing generations and differing work ethic among the generations
• Sibling Rivalry
• Succession Planning. Older generations not willing to let go and transfer power, and younger generations finding attractive alternatives to joining the family business
• How to diversify as a family into another business
• Determining the future business and management strategy for the business

Many problems experienced are common to a great many other Family Businesses. Family businesses can seek Family Business solutions to their problems, in fact most people don‘t know that such tools and resources exist. Family Business Australia has specialist advisors available to assist with family and business issues. Advisors work on a fee-for-service basis. The Family Business Australia website includes a calendar of educational activity and invites membership.