What are the advantages and disadvantages of family-owned enterprises?

First, the advantages of family business:

1, family-owned enterprises have low cost, strong sense of responsibility and less prevarication;

2. Family business groups have strong cohesion. They are all our own people, often thinking together and working together;

3. Strong decision-making execution. As long as there is almost no obstacle between decision-making and project implementation;

Second, the shortcomings of the family business:

1, because of cronyism, it is difficult to attract high-end talents, which limits the long-term development of enterprises unless the president has a considerable mind;

Because the boss is surrounded by relatives and friends, it is difficult to implement the system. After all, it's hard to give up affection. Most of the resulting systems are formulated for the lowest-level employees, and no one dares to say that the upper level does not implement them;

3. Most family businesses are centralized, and they often don't listen to well-intentioned different opinions, which restricts enterprises from learning from others and making the most correct decisions.

Third, summary:

At present, among the private enterprises in China, there are not a few family enterprises. It is reasonable to exist in its unique way in the current environment of lack of integrity. The key is that business owners should grasp the general direction of business operation, be virtuous and be strict with themselves, including their cronies, so that family-owned enterprises can develop.