What distinguishes a family business from other businesses? Family business may look the same with other businesses but what distinguishes a family business from other types of firms is the involvement of family members in the business; with this, a cultural dynamic/ values is created to influence management and decision making in the business.
“Researchers in the field of family business agree that family involvement in the business makes it unique. This involvement has usually been categorized in terms of ownership and management” (Chua, Chrisman and Sharma, 1999, p.35). This statement proves three things in the dynamic and uniqueness of a family business;
1. A business that is not owned by the family but managed by the family is a family business
2. A business that is owned by the family but managed by non-family members is a family business
3. A business that is owned and managed by family is a family firm.