alt Hacker News> family owned company act like they have stock holders
A family owned company does have shareholders. The shareholders are the people who own the company.
There’s nothing all that special about a family owned business in this regard, even though they want you to believe it’s completely different. Family owned is a loose term anyway. Large companies are large companies.
Replies
ericmcer • today at 4:32 PM
if anything they are even more tight fisted because every penny is theirs.
publicly traded/vc funded companies have always paid me the most because the money isn’t really theirs.
UltraSane • today at 4:29 PM
Every family-owned company I've worked for has been owned by a greedy family.
Companies can prioritize things other that money if the shareholders all agree. The more shareholders a company has, the harder it is for them all to agree on anything aside from "we want more money". Family-owned business often (but not always) have a small number of shareholders, so it's easier for them to have shared values.
For example, my brother and I co-own a smallish (~$5 million/year revenue) software business. We do care about money to some extent, but we regularly agree to do things that work against shareholder value because we also care about things other than money. With two people, it's easy for our values to be aligned on those other things.
With dozens or more shareholders, that's basically impossible. A publicly traded company couldn't realistically be like "hey shareholders, can we agree that we care a lot about this niche local political issue in the town the company was founded?" The more shareholders you have, the more the only commonality between them is "we want more money".
There are many family-owned businesses that are only in it for the money, but "family-owned" can be a proxy for "not very many shareholders" which at least opens the door for the company to have non-financial priorities.