Question

Define family business. Discuss the management control mechanisms in family business

09 Feb 2021
Answer :
Word Count : 836

Family businesses are a prevalent form of entrepreneurship and small business in various industries, including the dynamic and diverse field of tourism. A family business is typically characterized by ownership and control being in the hands of a family, with the business often passing down from one generation to another. In the context of tourism, family businesses can range from small bed-and-breakfasts and local tour operators to larger enterprises such as hotels and resorts.

### Definition of Family Business:

A family business is broadly defined as a business in which a significant portion of the ownership and control is held by members of a single family. This type of business often involves the active participation of family members in the management and operation of the enterprise. Family businesses in the tourism sector can take various forms, including accommodations, restaurants, travel agencies, and other related services.

### Characteristics of Family Businesses in Tourism:

1. Ownership and Control:
   - Family businesses in tourism are characterized by the family's significant ownership stake and influence over decision-making processes.
   - The ownership structure may involve multiple family members, each holding different levels of control.

2. Long-Term Perspective:
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