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This research aims to investigate, evaluate and explore the ratio of family owned businesses in Saudi Arabia. By an in-depth analysis of this particular topic it was further observed that Saudi Arabia is a well-off country with highly ingrained family-oriented occupying businesses. Be it a developed country or a developing country, family business always plays an important role in the economic development of a nation. The need for this research was to find out how much the family owned businesses proliferating the GDP and national employment of the country. Therefore, to check the contribution of the family owned businesses the Saudi Stock Exchange was approached and studied thoroughly. It also contributes a listing of existing family business, their current corporate practices and further identifies the need of reforms in their business. Primary data was collected from 10 family based companies by conducting semi-structured interview with open ended questions. At least 3 members from each company was interviewed in order to get confirm understanding of their corporate structure and practices and was further analyzed qualitatively, altogether 28 members were interviewed to collect first hand data. This research will also put light on how the Saudi government has helped and encouraged family owned businesses. Furthermore, secondary data was collected too from company documentation and utilization of websites. In conclusion, after a comprehensive analysis the paper concludes with policy recommendations.

Keywords: Family owned businesses; Saudi Arabia; Company; Saudi government; FOB (family owned business) listing.

The most pioneering and common existing type of business is the family business; one cannot ignore the fact that a large number of the thriving companies are FOB ((family owned business) especially in developing and industrialized countries implying their positive significance in the overall economy and global market.

According to Nicholas Davis, a scenario expert at the World Economic Forum, Saudi Arabia has a crucial role in establishing the future of the Middle East if not the whole world (Olayan, 2007). Because of Saudi's thriving economy it has grabbed plenty of attention and is driving towards the international economy which was particularly formed in the 1900s when oil was discovered. Due to this reason, the economic development plans have led to the Arabian Gulf region and it has become one of the main concerns of various western countries, which particularly considers its strategic significance in economic growth (Ali, 1992).

A Saudi family-owned business comprises of three interconnected systems, namely, Arab, family-owned and business. The first one describes the Arab cultural environment stemming from the historical tribal system, while the second one represents the company ownership by a group of family members or groups thereof. Finally, the third one, business refers to the activities of local and international businesses (Paul, Munajjed, & Alacaklioglu, 2006).

According to the census of Saudi Monetary Agency (SAMA), the number of family businesses in Saudi Arabia in totality is 621,400 companies, which make up around 95% of the total companies in Saudi Arabia as cited by Achoui (2007). Likewise, Falgi’s (2009) study of the public listed companies in the Saudi Stock Exchange shows that the family members and individual private investors (are usually family members) hold 11-30% of ownership. Some of the richest family businesses in Saudi Arabia are listed below.

Source: Al Masah (2011, pp. 27-28)

Saudi Arabia is a country where family-oriented businesses are deeply ingrained, ancient tribal solidarity system with nomadic merchant’s standard of living which is embraced with complex interconnections compared to what exists in the West. Saudi family businesses have radiant significance as it contributes to the country’s GDP and national employment.

Nevertheless, the lack of research on family business in Saudi Arabia made the topic worthy of scholarly investigation and call for in-depth analysis (Al-Dubai, Ismail & Amran, 2012).

In this respect, Saudi Arabia is one of the most well-known countries in the region. Family business in the Arab world is so vast that if taken together the top 500 companies can form the world’s third largest economy, accounting for about $7 trillion in yearly sales and hires more than 25 million people. According to a study of Family Governance Forum, there is an estimation of 539,000 family businesses in Saudi Arabia, which an approx 63 percent of the total operating enterprises. They donate $216 billion to the GDP (gross domestic product) of Saudi Arabia, and employ about 7.2 million people, 52 percent of the total workforce. From years this system has been running in families that has constituted their businesses from start, the youngsters are prepared from the start to join the family business whilst the elders prepare them for the future hurdles. The decision makers of the company are usually from their family that runs the business successfully for generations and pass on the business to their heir. Their practices are their strength which is usually the base of their institution; such company’s activities and tradition usually remain fixed. Most of the time the family members join the company at an early age and learn the mechanism of the work, understand the market, discover their responsibilities and duties and learns managing and operating the company real quick. One of the many challenges family owned businesses usually face the challenge of overlapping of ownership and business interest can menace the company sustainability. The importance of professionalism in the management of a family business is ineludible, especially at that potentially risky time when the reins of power are being passed from the origin generation to its successors.

Most company owners appoint board of directors as they don’t possess the skills of an managing a company, or in some cases the title of ownership is passed on an heir who may not be prepared for the responsibilities. An essential step was taken to improve the understanding of the mechanism of family businesses by Commerce and Investment Minister Majid Al-Qasabi of the National Center for Family Businesses, at the Chamber of Commerce in Jeddah. The purpose is to promote family values, sustainability and growth, and increase the chances of a business’s success.

Family owned business is growing further and flourishing in the kingdom of Saudi Arabia. The majority of the organizations established in the Arab world are owned by families or state. There is no doubt that the significance of family owned business greatly impacts the economic stability, on domestic alliances in terms of investment, employment, international agency alliances and capital flows. It is the backbone of the national economy and the diversification of the current private sector. Although there is still a deal of expansion in globalization, they need to evolve themselves and bring a change in their policies as this would definitely result in showcasing and enlargement of their business. Saudi Arabia’s WTO (World Trade Organization) entry and the greater need to expand the economic base on a more transparent footing, the role of the family businesses has to evolve into public-listed corporations for those entities that have the greatest economic impact in the long term (Ramady &Sohail, 2010). A study estimated that over two-thirds of all worldwide businesses are owned or managed by families’ enterprises and account for about half of GDP-economic activity (Shanker and Astrachan, 1996). In the MENA (Middle East and North Africa) region, and most particularly the GCC countries, the number of family businesses is significant. According to Tharawat (2009), family firms make up around 90% of the trading activities in the district. Similarly, Al Shaali, the Executive officer of the Dubai International Financial Centre (DIFC) revealed that 90% of commercial activities in the region are owned by family businesses, which employ above 73% of the entire personnel (Masmah, 2009) that constitutes approximately 15 million workers, both citizens and foreigners (Tharawat, 2009).

There has been a critical observation in the corporate structure and practices of the family owned businesses; therefore, the corporate governance is a salient feature for the financial profitability. Some of the firms are putting great efforts in upgrading their internal structures; they prepared their businesses for globalization and WTO competition and to enhance the corporate governance in their firms. A study of 2012 by the Jeddah Chamber of Commerce & Industry showed that the Kingdom’s FOBs in that year accounted for around SR350bn ($93.28bn), or 25% of the total. At that point, there were around 5000 FOBs in the country, 156 of which were listed on the Saudi Stock Exchange. Their significance to the economy is central, and their efficient operation is thus the concern of a range of government entities, from the Capital Market Authority (CMA), which as it opens the market to foreign investment seeks to strengthen corporate governance to establish the bourse as a desirable investment platform, to the Ministry of Commerce and Industry (MOCI), which is concerned with the more general performance of FOBs in the domestic economy.

As per (Bankanwanicha, Fan and Moly in year 2013 a family business is the company that has a crucial influence and benefit to the economies of all countries around the globe, There has been so much controversy about the concept of family business in the family firm publications as recommended by Carr in year 2009.The argument is a detailed reproduction of the concept of business as per Wright & Kellermans, 2011. Similarly Garcia Castro argued that the family firm categorization may be focused on generation, strength, experience and tradition Enterprises usually consist of diverse components in all areas, which are control, governance, management, and inheritance.

Various scholars have chosen various strategies for analyzing corporate governance in family-owned companies. As per Huse in 1998 year, the developed view is to concentrate on a specific governance system like the board of directors and examine it separately from the company's other governance frameworks. But, Coles in 2001 noted that one appears to neglect possible replacement effects within the same system and relations with the other governance structures while concentrating the efforts on independent frameworks. In alike fashion Bird et al. in 2003 noted that the main topics addressed by researchers on family business issues are: succession, family business distinctive, dispute, management / strategy, family business support, and macro issues.

Carig and Salvato in 2012 noted given the need to differentiate between family and non-family enterprises, several authors in many fields have taken contrasts between family and non-family firms. In several studies, the importance of family business versus non-family businesses and other business practices are also topics of concern and dispute among researchers as per Granata& Chirico in year 2010. Evaluating business values in an agreement will help to define the distinction among family and non-family companies. While family businesses maintain high efficiency, purchasers undervalue family businesses as opposed to non-family businesses in purchases. Investors or over takers continue to consider family enterprises as being unprofessional and unsustainable. Success at the workplace is yet another problem. A family business will follow a different system of corporate governance than a non-family business which might result in higher results (Martin-Reyna 2012.).As per Goel; Sharma et al, in 2012 the aspects that reflect key trends in family business study are policy, ownership, governance, and socio-psychological.

In 2010 Pieper suggested that psychology may make a considerable contribution to a thorough understanding of family company. The success of family companies is influenced by many factors as per GarcíaRemos&García-Olalla in year 2011 research. Significant factors influencing the success of family businesses are forces such as family engagement and a founding role (Bankanwanicha et al., 2013; García-Ramos &García-Olalla, 2011.). In general, family involvement in the company has a beneficial impact as concluded by Memili et al., in year 2010.

Sciascia& Mazzola did remarkable research ain this behald and suggested that None relationship exists between family control and performance participation, while family leadership participation has a detrimental association to success. The factors behind the adverse effect are the lack of technical skills for families in general, obstacles to the resources, disputes with family managers and setting non-financial targets .The creation of a family business identity has a positive impact on family ownership as per König et al. in 2013.. The family participation's effect decreases opposition to design measures. König et al. further noticed that the family impact has a detrimental effect on tempo, aggressiveness, resilience and versatility when it comes to discontinuous technologies. Benkanwanicha et al. in year 2013 argued that family members' marriage raises the interest of family business, which is another beneficial impact of family business.

Certain considerations influencing the success of family company include organizational strategy and board of director’s composition (García-Ramos &García-Olalla, 2011.).An effective tactical entrepreneurship also succeeds in superior performance (Webb et al.,2010).Furthermore, as per Garcia Ramos & Garcia Olalla in 2011 business meetings have a major influence on the company, and a negative effect when the founder leads the company. Other major research areas are the merger of family and industry, and the relationship among business and family.A critical factor for achieving business success may be the family commitment to the company as per Köniig et al., in 2013. Transferring from one generation to the next is a challenging move which could challenge the whole company. This was suggested by Molly in 2011.

Family business leaders in the third generation continue to be tactical, while owners in the second generation mainly concentrate on everyday activities (O'Regan et al., 2010.). 25 Family Business and International corporations. There is indeed a disparity among multinational and family company.In comparison, Molly in year 2010 concluded that there was no indication that the inheritance has an adverse impact on the productivity of the family business, although the transition may lead to a decline in the growth rate. Strategic thinking differs between family business groups.

In 20017 Mellahi, announced that the state in Saudi Kingdom has taken steps since after the early 2000s to establish the H.R.M function in the corporate sector through a detailed structure law. A comprehensive analysis of existing literature and surveys with Saudi executives exposed the ramifications of the new legal structure for corporate sector H.R.M activities. It assessed how important the growing model of H.R.M practices was through laws and regulations. The researcher has proposed sector-specific implications that will help both corporate and public sectors formulate policies that reinforce the H.R.M role. Albugamy, in year 2010 confirmed that the ultimate aim of recruitment and selection at KSA is to employ and position the suitable people in the right positions. We indicated that expertise and qualifications are the two primary factors that decide the candidates' ability in the jobs. Such influences have been known to be prevalent over corruption or any other cultural features. Just like the other Arab countries, the Saudi Arab people are extremely embedded in their culture particularly in the Quran's prescriptions. For example, the Arabic word Waastta, which refers to relations for personal benefit, defines the features and effect of civilization on the life and business of individuals. Waastta explains wishing to get work.

In 2012 Alharthey&Rasli, researched Saudi Arabia's new human resources (H.R) programs using a survey conducted by hundredorganizations. Researchers researched the following H.R operations: accounting, working hours, managing insurance, hiring, and training. We used a self-reported questionnaire. Test respondents included specialists in H.R and IT, and formed eight hypotheses.This was noticed that organizations, besides H.R computer programs, used extra tools for H.R planning, were pleased with the level of success of H.R.M systems; were ready to introduce new ones, using more efficient systems in their practice. This also noticed that the Saudi sector was not ready for the SaaS model but had high capacity for growth. The findings showed the Saudi industry was able to adopt the latest technologies. In order to improve the system and take a step towards a successful future, new innovations, ideally based on the SaaS model, are needed. Interestingly, the study revealed that in the Saudi firms there were still many people who did not optimally use H.R.M programs and thus had to combine them with other applications and services, most of which were still obsolete and never used across the globe. Contributing factors for this fact may be complexity of H.R.M systems; insufficient software translation which is incompatibility of the features of the programs with the particularities of Saudi business needs and requirements; insufficient features; unreasonable costs, etc. It is important to develop, execute strategies that will illustrate the strengths of the H.R.M structures to modify and strengthen them.

Similarly in another experiment research by Jehanzeb, Rasheed, Rasheed, &Aamir in 2012, explored the effect of incentives and motivation through expected amount of incentives on work satisfaction in both Saudi Arabia's public and private institutions. For this analysis 568 workers from both industries were involved. Regression testing was developed for conducting the study to evaluate the relationship between incentives, motivation, and work satisfaction. Results indicate that incentives have positive motivational value, motivation is positively linked to employee satisfaction rewards which have a positive impact on job satisfaction. The findings are incompatible with past studies carried out to examine the incentives, motivation and work satisfaction relationship in appropriate situations. The study reported that workers' level of compensation, motivation, and job satisfaction had a good relationship within Saudi Arabia's banking sector. The rise in compensation resulted in significant variation in the morale of workers for both public and private institutions. Good relationships with high job satisfaction were exercised in organizations with focus on independence and colleagues. Incentives need to be strategically re-adjusted to meet the organizational objectives, improve the morale of workers to better perform their work and increase their employee satisfaction. Culture and faith offer further clarity about certain activities in the workplace. In year 2012Torofdar, &Yunggar, announced that Saudi Arabian Kingdom is one of the Middle East's wealthiest nations as the world's largest exporter of petroleum, crude oilwith considerable economic and political impact. In 1999, Saudi's economic reform efforts led to its elevation to the global organization. Saudi people are very young and the country's voice is the youth with a huge 60 per cent of the population under the age of 40. Today, the phenomenon of high income and high immigration confronts KSA.

Joblessness in Gulf Cooperation Council citizens is motivated by a variety of major factors that include majorly lack of expertise, low job morale, and high wage demands, SA and the larger GCC face a number of specific challenges. Reform is confronted, as always, with barriers and constraints. Incentives need to be strategically re-adjusted to meet the organizational objectives, improve the morale of workers to better perform their work and increase their employee satisfaction.

Investing in human resources is a significant priority for every developing country, they concluded. A holistic solution can be found to address the challenges the Saudization policy faces. The strategy covers three fronts: widening the economic base and creating additional employment in strategic areas where Saudi Arabia has a comparative advantage and therefore can provide appropriate earnings for citizens, build workforce by reforming and updating the education system; job skills to generate a generation of qualified nationals to meet economic needs; and introduce successful labor and foreign policies by reorganizing the scheme Al-Balussin& El-Garaihy in year 2013 used in his research the principles of human resource management practice, information management, organizational culture, organizational creativity and organizational success to increase national labor participation. While the research findings were significant, no research were released to conduct a survey on the function of human resource management activities in improving corporate efficiency by interacting with organizational culture, knowledge management and organizational development. This research described the relation between philosophy of organization, information management and creative organisation. The study used models of causality, and developed a conceptual structure based on a detailed analysis of the current H.R.M research. A list of 200 human resource directors employed in large companies in the east region of Saudi Arabia was used. Confirmatory factor analysis [C.F.A] and S.E.M were employed to analyze the data gathered for the system study. The study found that methods in managing human resources are a significant indicator of workplace culture, information leadership, and in effect, organizational creativity is positively related to organizational success. The study attempts to draw inferences about how an arbitrator's position is played by H.R managers and how their position improves organizational success. The research is interesting in that it assesses the effect of human resource management activities. Organizational culture, organizational creativity and knowledge management, and organizational efficiency. Qureshi, Ansari, &Sajjad in year 2013 tried to find out about modern-day human resources management problems in Saudi Arabia's retail market. The Kingdom of Saudi Arabia has a strong economy and a stable sector, and the foundation of the Saudi economy is without question is Petroleum and crude oil and in response to this, the kingdom has spent considerable effort in diversifying its economy to include manufacturing, retail, and the service sector in particular to improve its growth. Throughout this report, the researcher shall review critically current human resource trends, such as new problems in the recruitment and selection of human resources, the growth of human resources skills And the Distribution capabilities. Thanks to the higher domestic purchasing power, the retail sector is set for significant growth. The report argues that human resource management has also become more influential in comparison to other strategic measures because of the rise of the retail sector. While human resource development practices in the retail sector in the Kingdom of Saudi Arabia are on the right trajectory but most of the time due to the sector's complexities, some of the human resource management activities such as training and equipping & growth have become the current problem in Saudi Arabia's human resource development. Saudi professionals' recruitment and training & development is significant, so that the new Saudi graduates from Saudi Universities can find and deliver suitable jobs in the retail industry.

During 2014 Alotaibi conducted a research and had used a qualitative analysis to analyze 4 variables in his doctoral thesis. They discuss the current unemployment crisis in Saudi Arabia, assess the effectiveness of the human resource development model as it relates to the existing issue of unemployment; assessed the effectiveness of the human capital development model under the current Saudi Arabia strategy and discussed possibilities for a collective approach to reducing unemployment in Saudi Arabia.

The study also proposed network governance theory to enable stakeholders such as the Department of Labor, the Education department and private organizations to function as a single entity in Saudi Arabia's production of human resources.Such research proposed an approach to increament and improve human capital  for setting up a system that would spend in Saudi residents. A qualitative approach was used to review past literature on Saudisation with a view to providing insight the existing issue of unemployment and the secondary data from Saudi government records have been used to determine the efficacy of individual skills and ability rates of those participating in attempts to tackle unemployment. In particular, the researcher conducted many interviews with stakeholders, policy makers and administrators to identify mutual incentives and obstacles in build a curriculum improving Saudi human capital skills within the Saudi education system. The results of this study were focused on four elements: the impact of legitimacy which is sharing authority and power, the role of the existing human resource system, stakeholder opportunities and the sharing of organizational processes for successful teamwork. The findings promoted the development of human capital skills and the creation of opportunities for nationals through their educational path to acquire knowledge and practical skills. The research author suggests speeding up the processes of job development and supporting a Collaborative model for investors setting up a compulsory national vocational (internship) system to build human capital skills to reduce the unemployment rate.

In the background, numerous scholars have attempted to study, explain and evaluate the significance of family-owned enterprises to the global economy. Many analysts have concluded that family enterprises have a major effect on local economies and dramatically affect investment opportunities, skilled employee job opportunities, idea and institutional advancement, and competitiveness (Carlock, 2010.).

Preferably, therefore, preparation must be part of a corporate plan, and should be related to corporate priorities and organizational efficiency. This was achieved, primarily from the assumption that such training increases employee attitude, job satisfaction, efficiency and standard of work; enhances the customer's overall view of the organization; and raises income rates by rising staff turnover and related expenses.

The objective of the research was to evaluate the extent and nature of the strategic planning processes in a sample of family firms in Saudi Arabia. It is thought that the Saudi culture is more open to verbal (qualitative) than written communication; therefore, they opted for qualitative methods to achieve their objectives and made attempts to learn strategy and its process in family firms using case studies. Interviews were used as a primary source of data for this research; interviews were about 100 minutes long and conducted 16 interviews. The resulting amount of data was manageable and reasonable for the purpose of fulfilling the research objectives. These interviews were obtained from six family firms and interviews were carried out with only top management who are thought to provide useful information that fulfills the purpose of this research. Thus, the researcher used his connections to access and studies 6 firms in Saudi Arabia. The selected companies are all located in Jeddah (the same city as the researcher) for ease of accessibility. They are well established and have existed more than 20 years. They are either first or second generation and fully owned by the family. Another important criterion was a high confidence level where openness and data collection would not be an issue. Interviewees were also carefully selected. They were either the company head or second in command. In all cases, they were responsible for company strategies and direction. The researcher studied different case studies to understand strategy formulation in the Arabian Gulf using case studies of convenience sampling. The sample included different fields (banks, airlines, hospitals, hotels, IT, schools and consulting firms). This research found that some family businesses do plan. They use a key performance indicator to plan. They are more affected by their culture and leader personality than systematic analysis and diagnosis and also found some family businesses that are still run in their own traditional way. They rely more on their leaders‘cognitive and entrepreneurial skills than on planning. The research offered some advice to families and their businesses, to policy makers as well as to practitioners. The research also contributed by offering researchers a step towards understanding this important segment and serves as a starting point that opened up many research avenues to explore. (Alwafi, 2013).

The purpose of the research was to discover how Saudi family business leaders have planned and implemented internationalization. There were three leaders from different international Saudi family businesses who participated in semi-structured interviews. The participants had shared their experience in achieving successful internationalization for their family businesses. After analyzing the interview data and validating through member checking, 3 main themes emerged: (a) the characteristics of the family business to compete internationally, (b) the characteristics of a suitable international market for family businesses to internationalize, and (c) the characteristics of a successful internationalization opportunity for a Saudi family business. The research methodology is a qualitative case study design and as given the importance of building relationships with the family business leaders, the nature of this research required an understanding of the qualitative research to explore how Saudi family business leaders achieved internationalization and overcame all challenges. The qualitative methodology is the best fit for the research topic. The research design was a multiple case study concerning Saudi Arabian international family businesses. The sample included the leaders of the international Saudi family businesses who have demonstrated significant participation in the internationalization process from the beginning of the idea to the current operation. The sampling method was purposeful by selecting participants based on the selection criteria of being a leader in international family business in Saudi Arabia. Being a member of the family was not necessarily a condition for participation because several family businesses hire non-family managers to lead their internationalization process. All ethical issues were considered when collecting data from participants. The data collection section includes three areas: instruments, data collection technique, and data organization technique. The instrument includes the name and type of the instrument used for this study. The data collection and organization techniques included the collection of the data through interviews and how the researches has organized and collected data for analysis. The interviews with each participant were audio recorded to ensure accuracy. Member checking and follow-up interviews with participants were the techniques used for further understanding of the participant perspective. The researcher had used online web data regarding each family business to correlate with the interview data and increase his understanding of the participants’ answers during the interview process. His analysis of the interview data indicated that internationalization is an opportunity for Saudi family businesses to increase their profits and sustain their 47 business. In addition, there are various ways family business leaders can achieve internationalization with diversified products and services. Family business leaders need to have qualified resources furnished with the required knowledge and budget. The leaders also need to select the appropriate market to sell their products or services so their internationalization effort can be successful. (Bouges, 2011)

Methodology

This study adopts a qualitative nature of methodology which involves a semi-structured and face to face interview tools for the data collection. Semi-structure interview is used in this study due to the reason that it helps to guide in data collection method. This tool maintains some structure but it also provide the researcher more flexibility to collect more additional data as well. It also helps to get more details about the participant’s feelings, reaction, opinions and thoughts.

The other tool used in this research is the face – to – face interview, which is known as in person interview. This tool has been chosen because it is the best form of data collection when it is required to minimize non response and maximize the class of the collected data.

In this study, one of the famous companies has been targeted to be interviewed. The name of the company is Kinana for Trading and Contracting, which is a family, based business and have been accomplishing and succeeding. Company is working in Food Manufacturing, Food Packaging business activities for many generations.

Although the family businesses are cooperative in nature, but there are major challenges that are being faced by such form of business that needs to be addressed. The main challenge that appears is the basic transfer of authority or leadership that needs to set boundaries between the relationships of employees and family members. As most of these businesses consist of family members that operate the different functions of the company. The effective work ethic must prevail regardless of blood relations. The leadership must be firm in order to not affect the continuity of the business. From the accumulated information these family businesses encounter such incidences that involve the circumstances of appeasing the family members involved in the business compared to the non-family members.

The following are the key aspects that commonly exist in corporate governance and a family owned business:

Due to Saudi Arabia’s cultural affect the strategies are implemented by forming on bases of traditional approach. Similarly, the succession planning is also determined by the set rules that are accounted with the family influence. The succession planning is quite hereditarily prescribed in the family oriented businesses. But in such businesses the family member has accomplish tasks that would make them worthy of the position and be able to lead the family business forward. To assess the worthiness the member has to lead with results and expand further. Most of the time the elder family members are the leaders of the business, they are most often consulted for the decisional process. This managing assumption is made through the aspect of experience. The younger members of the family are initially trained for the business and further on with better performance and experience eventually become the successor of the business in terms of leadership. The business can have consultants that could help further incorporate better strategies; these consultants are in such cases members of the family but if needed the outside consultant agencies are also acknowledged.

Many challenges are faced by such businesses as the elder individuals are sometimes incompetent to carry out some of the tasks. To eliminate this problem the business leader must have to make decisions that would not have a negative effect on the other members of the business. So in order to efficiently tackle the situation the leaders may tend to put less work load on such members.

The positions are determined as the family members are always treated as the leaders the company and are assigned at the higher position in most instances. The succession planning is also completely implemented on the non-family of the business as timely retirement is implemented upon the non-family members.

The operational management is the main key component that needs to be better assessed. The managerial influences in many family oriented businesses are incorporated to keep all the members of the company on track. The aspect of honesty and loyalty is much prevalent in such businesses but in some cases that might not be the cases. If such aspects are included then the company can account to many threats. So it is essential for the business to incorporate such strategies to not be accompanied by such problems. The work must be distributed accordingly instead of being bias in situations the member who is more worthy of carrying out the task must be given the task.

As these businesses have strong core values the CSR activities are also incorporated by donating and carrying out charity work. Especially the family owned businesses in KSA would have core traditional, cultural and religious values that accompany many businesses as well. So in order for the appeasement the business must set certain responsibility for the contribution to the surrounding.

The performance of the individuals in the business is the main element that must not be neglected, especially in a setting where the business is family oriented. As any biasness would prevail, then the counter affect can be harmful for the company. This would not only be prevalent in the business but also outside the business and in personal relationships as well. Also the change must be supported in order to grab opportunities. This must involve a process that can help the individuals in the business welcome change and not be reluctant. A business regardless of its nature as a family oriented business or a non-family oriented business the business must always be ready to face situations that may involve flexibility. In business involving family members the change must be introduced descriptively rather than skipping through it.

The research prescribes that the family owned businesses are determined by many aspects that influences the planning for the future decisions. These decisions can range from financial aspect to the operational aspects of the business. In the family oriented businesses the family members are key source that represent the key decisions. These firms are enriched with many core values that are envisioned in their organizational development as well. Especially for the Kingdom of Saudi Arabia these family owned businesses are contributing a great amount economically. In many other countries as well, the family owned businesses are thriving. These businesses have the same model as any other business but the core element that it practices is to morph the values and be able to create a work environment that is secure.

The succession planning is to some extent prevalent in these businesses but in some practices the business is flexible to the proposed planning. This flexibility is the key aspect of success for these businesses as to be able to morph according to the situation is better. These businesses are accompanied by consultants that are deemed to be genuine and experienced. Instead of appointing an outsider for suggestions the company can refer to the member that is willing to suggest. For such consulting nature of the family members the business tends to extend the retirement period of such individuals of the business.

It is important for businesses to keep the workforce happy in order to be able to get good services in return. The family owned businesses leading force consist of family members and in order to neglect the negativity, the leaders must assign specific positions that meddling in different positions may not lead to any confrontation in work setting. Also the business must not make the non-family members of the business feel any lesser compared to the family members of the businesses this can also give rise to many conflicts among the work force.

Such businesses tend to do better due to the interest of the individuals involved in the businesses. It is the interdependency that in many ways can help in better judgement compared to the formally created environments in the businesses that may not involve family members. Also the incorporation of profit and the personal interest in the business is the driving force for the individuals that run a family oriented business. All these aspects accompanied by a strong surrounding that is based on the family values strengthen the concept of the involvement in the business. The main ethical elements that a business deems to achieve are teamwork, loyalty, honesty and passion. These elements are more often included in such family oriented business the only aspect that it must work on is the leadership and professionalism. By effective leadership and management the business can succeed and also be sustainable in nature.