Reducing and resolving conflicts in family businesses

[Ayuba Ernest]

Family businesses are the backbone of the our economy. They account for 70% of all businesses in the United States and generate $5 trillion in revenue. However, family businesses also have a high rate of conflict. In fact, two-thirds of family businesses experience some kind of conflict.


There are a number of reasons for this. First, family members are often emotionally invested in the business. They may have different ideas about how it should be run and clash over who makes decisions.


Conflicts in family businesses can arise in many different ways and can be difficult to resolve. There are a number of strategies that can be used to reduce and resolve conflicts.


Some strategies to reduce conflicts in family businesses include:

• Establishing clear roles and responsibilities for all family members

• Defining and communicating family values

• Creating and enforcing rules and procedures

• Encouraging open communication


Some strategies to resolve conflicts in family businesses include:

• Negotiating a resolution that meets the needs of all family members

• Seeking outside help from a professional mediator or arbitrator

•Taking legal action to resolve the conflict

 

[Augusta]

When it comes to any conflict it is always about the people involved especially if the other party is stubborn and not logical then they will always be issues. The truth is that I don't see why a business or businesses owned by a family should be in contention if the people involved are peace-loving people. You shouldn't bring your ego or pride into a business that has to do with everyone.

Like you have righyly stated each person needs to show maturity, accountability, respect and contentment when it comes to a family business. if you are the junior one then you have to maintain your position and go with only the responsibility that befits your status and not go fighting the seniors even if they take the larger portion. it is their right as the seniors.

With family business everyone should be able to communicate in the best way they can. One way conflict can be resolved or even limited is through open communication. This way the people involved will be able to be on the same page and all information passed will be clear to everyone.

if there are issues having a meeting that will have the heads in attendance to tackle it will be the best bet.

 

[King bell]

Conflicts are a natural part of family businesses. They can arise from different opinions on how the business should be run, from personal conflicts between family members, or from disagreements about money. When not resolved, these conflicts can cause serious damage to the business. There are several strategies for reducing and resolving conflicts in family businesses. One is to have regular family meetings to discuss any problems that have arisen. Another is to have clear rules and procedures for how decisions are made, and to stick to them. Family members should also be aware of each other’s strengths and weaknesses, and try to use them to learn from each other rather than fight over it.