Business ownership and business performance are deeply related concepts. It has been observed that the business performance is guided by the type of business ownership. Among different ownership types, the family owned businesses are normally better performing than other types of businesses.
On Business Ownership and Business Performance
There is a very functional and practical relation between the concepts of business ownership and business performance. It has been seen that the performance of a particular business enterprise depends on the type of ownership because major business decisions are taken by the owners and success or failure of the business depend on these decisions.
Family Owned Businesses and Business Performance
In case of the business performance of a family owned business, it has been seen that all the members of a family tries their best to make the business successful as all of them have a common interest of making profit.
The Reliance Industries, owned by the Ambanis as well as the Tata Group in India and World Wrestling Entertainment in the United States of America that is owned by the McMahon family are good examples of family owned businesses.
Public Sector Businesses and Business Performance
It has been observed that the business performance of the public sector companies rises once the shares are issued in the market. The main reason behind this is the fact that the public sector companies want to retain their shareholders as they are a major source of capital and because of this, these companies try to raise their performance. This is especially applicable for those companies that have been making losses.
Partnerships and Business Performance
According to several survey reports, the partnership companies perform really well if there is a partner who holds the major portion of shares of the company. The reason is very simple that the major shareholder becomes more focused on making the business more successful as in case of profits he is likely to receive a bigger share than the other partner or partners.