Several successful business leaders are the founders of some of the famous family corporations.

Have business leaders become more successful since having a family company?.

Although they are considered very useful to the Saudi Arabia economy, managing a family business comes with many strengths as well as negatives. One of the biggest concerns is ensuring the business will endure any financial curve or market crisis and makes it to the next age group, as this will be one of the resources of income and wealth for the family. The separation of work life and private life can be somewhat difficult as there is too much independence involved, as opposed to when you work within an business that is not created by your family. For some people, this may work, but for the productivity and performance of the company it isn’t ideal. Entrepreneurs who have been in the industry for a important number of years will acknowledge this, such as Lubna Suliman Olayan. Employment and recruitment within the organization will not be as high in contrast to other companies, as members of the household will all make contributions, which means capabilities and knowledge will not differentiate severely within the firm, as there is no wider knowledge involved.

In many middle eastern countries, family-owned businesses are the tradition. This has been a culture that has been about for a long time and generations, as commonly this is a way of showcasing your capital. This is when a business is owned and operated and controlled by more than one member of the same family, so possession will be controlled by a one family. Most family companies are founded by high-net-worth businessmen as they have the funds and training to do so, an example of this is Hassan Jameel. In Saudi Arabia many people consider them the anchor of the economy and believe majority of wealth is brought in through these types of businesses, as they think they create recruitment and welfare for the country.

As the conventional culture of the country itself is unity and family bonds, they will have the ability to form a devoted partnership with their clients, as customers will establish trust with them. This will profit the investment side to a companies. The business plans and objectives are what they will be together working towards as a family, which makes it simpler to achieve, in comparison to other companies which are not family handled. Single-family ownership is starting to become more noticeable worldwide, as individuals can see the succession it can lead do if done appropriately, Mohammed AL Issais an example of running a rewarding family business.