I would rate professionally run business over family run businesses. we can argue about the professionals that they will always look for thier growth but let me remind you guys family run business are at a very high risk of family’s internal politics. Overtime the issues like who will control what and who will be next successor leads to a situation where whole organisation can become a battle field. A classic case from India can of Reliance. Look at the way Mukesh and Anil Ambani fought over control…had this been a professionally run business i m sure the situations would not have developed.we should not professionals as greedy people who just want to earn huge salaries but should look the them highly skilled and experienced people who run the businesses keeping shareholders interest at top priority.Even I’ll agree that in the family owned business his main intention is to improve the business n success towards the business. Where his /her involvement and improvement is very less in this family owned business.
In this present generation professional business is very much competitive and every one will be looking forward towards their self achievement and they will come up with their innovative ideas. Finally the main goal to gain more profit individually.
Professional run business’ are more likely to take risks hence they have higher gains (or losses) but a family run business is less likely to take a risks they generally have more stable profits. Moreover in family run business’ there is more centralization of authority which makes it extremely rigid and cumbersome, whereas in professional run ones the authority is more decentralized hence decisions are taken faster.Getting on a logical conclusion, issue is actually with lack of professionalism in family run business… professional managers should be appointed in family run businesses.. so as to increase the goodwill of the business as it perhaps gives a right path leading to success, such managers provide proper working techniques as he is professionally trained… and then aside all these matters,he is master in making the strategies for an effective business..!!!
Although it will always remain a topic of discussion that which one is better family owned businesses vs professionally run businesses but end decision has to be of investor