Nepotism In The Family Firm:
Problem Or Solution?
One of the positive factors in family held or managed firms, is the succession from one generation to the next when son/daughter “takes over” from dad and the business continues to thrive and grow.
The successful “passing-of-the-torch,” so to speak, leads to stability, longevity, and successful growth. This is a positive factor not only for the family business, but also for the community at large as well. Nepotism (favoritism shown to family members) in family firms is a normal occurrence–otherwise we wouldn’t have a family firm. However, in some instances, nepotism can lead to difficulties not found in non-family firms. More…