Family businesses are those enterprises managed or controlled by a group of people whose interests are tied together by a family unit. Family businesses are those where policy and direction are subject to significant influence by one or more familial units. This influence in exercised through ownership and sometime through the participation of family members in management. It is the interaction between two sets of organisations, family and business, that establish the basic character of the family business and define its uniqueness.

Family businesses are often criticised for their lack of professionalism in dealing with environmental complexities more efficiently. Intervention of family in the business affects business-like responses to various situations of opportunities and threats. As a result, more and more family businesses are getting into trouble. Problems that most of the family businesses get into are: conflicting business and family norms; rivalry among family members, professionalisation and problems of continuity. In the past, these problems have led even the most successful enterprises into severe problems causing sometimes the collapse of business enterprises. Some of these issues and problems are discussed here:

i) Business vs. Family

Family businesses very often face this unique dilemma to make a choice from alternatives that is best for the business against the family norms. Given this choice, decisions are very often made in the interest of the family and not business. Values, norms and