A Study About Family Businesses in Kanyakumari District

Abstract

Family Businesses are the oldest form of commercial organization and plays a crucial role in the development of the economy. It is a distinctive organization form with concentrated ownership, deep-rooted tacit knowledge, and lengthy family tenures. These are commercial organizations which are passed on from generations to generations and hence, the members in the family tend to influence the business decision making process (Baltazar et al. 2023). Family business aids in the survival of an individual when there is high unemployment rate and it provides job opportunities as well. However, there are problems involved in family businesses such as inability to incorporate business knowledge to the other family members. This can cause hindrance in the development of the business and even lead to the closure of the business. (Amenah et al. 2023) The research objective of the study is to analyse the issues faced in family businesses and providing the required suggestions. The primary data collection is through convenience sampling, and the sample size is 120. The secondary data collection was through journals, books, websites and databases. The statistical analysis revealed significant differences between age groups and the advantages of family businesses, particularly in areas such as long-term vision, commitment, trust, and agility. Similarly, key challenges like family conflicts, lack of succession planning, and resistance to change were found to significantly impact family businesses, highlighting the need for targeted interventions.