Debunking 5 Myths about Family Businesses

The Published Daily founding team is comprised of four siblings who always make a success out of the ventures they begin together.

Myth #1 – Familypreneurs Are Dysfunctional

“Most people picture familypreneurs as a family of individuals who are always bickering and stabbing each other in the back,” continues Josephine. “The fact is that family businesses are initially created by individuals who share a common purpose and goal. Successful familypreneurs know very well that the company’s success depends on keeping the relationships within the family amiable. They work hard to resolve issues quickly and to the satisfaction of all parties involved.”

Myth #2 – Small Mindedness Permeates the Familypreneur Environment

“The fact is that familypreneurs are created and survive because of the ‘larger vision’ mentality they espouse,” Josephine said. “Even with long hours, the most successful familypreneurs allow their members substantial freedom and flexibility in the use of their time – and considerable freedom from bureaucracy. This brings the creative juices of each family member to the forefront, thereby ensuring the success of the company.”

“The long-term mindset of familypreneurs also works to their advantage in this recession,” added Josephine. “Realizing they are in this for the long-haul and efficiently catering to the swiftly changing needs of the market actually causes many family businesses to grow during a recession.”

Myth #3 – Familypreneurs Don’t Treat Employees Well

“There is a reason Fortune Magazine recently named Wegmans Food Markets, a family owned supermarket chain, as the fifth best place to work,” continued Josephine. “Familypreneurs truly provide a humane working environment; in fact, according to many surveys, family businesses actually provide the best kind of environment an employee can ask for.”

“On another note, successful familypreneurs take a pulse of their employees on a regular basis,” continued Josephine. “In addition to recognizing the value each family member brings to the table, familypreneurs are well aware of the unique value contributions the non-family team members make, and are therefore uniquely equipped to position employees in just the right places in the company where they will thrive.”

Myth #4 – Familypreneurs Can’t Handle the Changes Growing Markets Present

“Due to the very nature of the ingenuity ingrained in family business leaders, they are generally in the top tier of leaders in their industries,” says Josephine. “One wonders what the Marriotts, Disneys, Fords, Nestles, Ferraris, and Levi Strausses of the world would say to the myth that family business don’t react well to changing markets? Each of these companies has consistently changed with their environment and grew to meet the needs of their markets by providing personal service; this engenders customer loyalty.”

Myth #5 – Investors Are Scared By the Volatile Nature of Familypreneurs

“Investors are familiar with the fact that familypreneurs constantly keep their mind on the prize, and they like the diversity familypreneurs provide,” says Josephine. “They trust their money is safe and that their investment will grow exponentially due to the commitment of the familypreneur.”

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