Family Business Pitfalls
Rivalry vs. Birth Order
In a family business, families with more than one child who work in the business can lead to it’s demise. According to some recent research birth order shows why and how children born into the same family are totally different. If conflict is to be avoided, birth order should be taken into consideration and the role each sibling plays with the business. Review some of the factors below:
First Born Children – First born children in most cases are authoritative, and more conservative than others born later in the family. They usually take charge of situations, are more conscientious, more responsible, but in some cases more anxious about problems they can’t control. They are also more comfortable within their own skin.
Sibling Differences – Gender differences can often out weigh sibling differences. Firs born girls can be as conservative as their first-born male counterparts. Whether male or female, a first-born is more likely to become a meticulous engineer than a later born child. Later born children are inclined to be more liberal and open-minded. They also tend to be more accepting of new ideas.
Conflict – Interestingly, conflict does have a place in the family business and it can be beneficial. Siblings as children are encouraged to express their differences and are more likely to find common ground and get over conflict as adults. However, in families where conflict is repressed it is much more difficult to establish sound and open communication.
Birth Order – A child’s place in the birth order is a major influence on his/her experience of childhood. When raising their first child, parents are anxious and attentive, but by the time the other children are born they are more relaxed and have the experience. Between the birth of the first child and the last, parents change economically, physically, and psychologically. All of these changes affect the upbringing of each child. And when there is a gap of five or more years, the younger child can enjoy full attention as a second “oldest” child.
Succession – The stage of the family business’s life cycle calls for different skill sets and personality traits. Because one child was born a few years before another does not make him or her the right person to take over the business. Birth order is not a factor when choosing the successor.
Birth order should to be taken into account when evaluating each child who wants to go into the business. It’s important to note, when Mom and Dad are no longer around the children will have to deal with one another. Preparing children for open and constructive communication can be easier when birth order is taken into consideration.
