Family Firms

Abstract

Firms are controlled by the family members with few professionals for long periods through history and it means the power to fix the price of products or services by arbitrary methods. These are exclusively reliable and experienced companies. However in the regular markets prices of products and services are. affected by the competition between organization of the same type. The vast proportion of business enterprises, old and new, has its origin in the family: The skilled tradesman or the inspired innovator flowering into a sizable family firm and ending up as a public company is a familiar pattern. This progression may take centuries or it may be achieved in a short span of years. Whatever the pace the family firm today presents an unique set of management situation. A definition must be sought. Perhaps the most satisfactory would be, simply, to describe a family firm as one which is predominantly owned and managed by a family. Whether the firm is a private company or a public one, the founder, or the founder's descendants, still exercises control.