Confusions between business and family
The Study of the Research Center for Families of Entrepreneurs | BBVA from IPADE Business School also assesses how family businesses are making progress in correcting the confusion that arises from mixing family issues with business and vice versa.
Aparicio pointed out that, in businesses founded by families, conflicts often arise when the affairs of the company are mixed with those of the family. These situations range from occupying a position in the structure only because of kinship, to money issues, not knowing how to separate family expenses from those of the business operation.
At this point, the interviewee stressed that for family businesses it is a challenge to know how to overcome conflicts, “because if the family is well, the company will be well.”
He explained that the dynamics of family businesses have a strong emotional component, which is why they are prone to presenting conflicts of this nature. For this reason – Aparicio deepened – many problems tend to pass from generation to generation.
“All companies have conflicts, but conflicts are not avoided, you have to know how to identify, address and solve them,” he recommended.
Progress towards institutionalization
The third factor analyzed by the study is the progress of companies towards institutionalization. It is intended that companies work on their structure so that they stop depending on people and begin to depend on processes.
“A structure must be designed in which the dynamic is that the institution survives and grows as people pass through it,” explained the director of the Research Center for Families of Entrepreneurs | BBVA of the IPADE Business School.