Why might some SME owners give more preference to family involvement Essay

Why might some SME owners give more preference to family involvement in the management of SMEs compared to others - Essay Example ssary ambition to devote their skills in ensuring that the businesses survives the threats of the environment to achieve growth and the overall maximisation of profits (Eisenhardt 2009, p. 78). The following discussion shall evaluate on the several aspects that SME owners evaluate to resolve on the appointment of family members to the management of the businesses as of importance. With the growing competition and the need to grow the segments of operations in order to yield and accrue the benefits born to economies of scale, SME owners acknowledge that managerial positions should be directed to family members since they have a stake in the businesses. Small microenterprise businesses contribute to the biggest percentage of all global businesses. Therefore, competition is evident for each of the business seeks to prosper in growth and profitability over other common and many other entities with similar production and market objectives (Habbershon, Williams, & MacMillan2003, p. 87). SME owners are knowledgeable of the fact that other similar businesses in their segment of operation may engage in unethical ways to amass relevant, but secret information that will serve for the benefit of the competitors. The practice of appointing learned family members to such positions is the fact that the owners are knowledgeable of the positive influences such individuals bear (Gomez-Meja, Nunez-Nickel, & Gutierrez 2011, p. 90). Notably, the appointment of family members following a certain protocol of tangible and intangible forms of incentives serve for the benefit of the organization since such managers realize the importance in ensuring successful outcomes and limited threats to their organisations (Martà ­nez, Stà ¶hr, & Quiroga, 2007, p. 90). Agreements signed entitle an individual to manage the SME as a family business and further as an honourable job position with its interest after some time without necessarily being physically active (Eisenhardt 2009, p. 88). This helps