Having consulted to hundreds of businesses over the past 30 years, including several family businesses, I agree with you to a certain point. However a couple of the most successful businesses I have worked with have had family members in upper management too.
The key takeaway for me is like any business partnership - if the direct stakeholders are all aware of their roles and responsibilities, and have a good grasp of their relative strengths and weaknesses, then it all work well.
However, if there are family members in there who are just along for the free ride or are only interesting in padding their nests or building a mini empire, then it all goes pear shaped and toxic very quickly.
Biggest problem I've seen with family run businesses is the generational change over. The next generation of new blood rarely want to run with the 'old way' and tend to make changes for the sake of change, and do it with little experience of how to recognise/prevent things going off the rails.
The key takeaway for me is like any business partnership - if the direct stakeholders are all aware of their roles and responsibilities, and have a good grasp of their relative strengths and weaknesses, then it all work well.
However, if there are family members in there who are just along for the free ride or are only interesting in padding their nests or building a mini empire, then it all goes pear shaped and toxic very quickly.
Biggest problem I've seen with family run businesses is the generational change over. The next generation of new blood rarely want to run with the 'old way' and tend to make changes for the sake of change, and do it with little experience of how to recognise/prevent things going off the rails.