Chapter 2
Differences Between Family and Nonfamily Firms
Several significant differences are apparent between family and nonfamily firms. Family businesses often have a long-term view; a lasting mission, vision, and purpose; a desire to create a nurturing, caring community and to act as stewards; and an ability to build relationships, bonds, and connections with customers, suppliers, and other outsiders.1
The Family
By far, the greatest difference between a family firm and a nonfamily firm is the addition of the family unit. The involvement of family is both an advantage and a disadvantage. It not only can lead to a tremendous competitive advantage but also can be the cause for serious dysfunction and complications. The nonfamily firm does not ...
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