~ 438 ~ ISSN Print: 2394-7500 ISSN Online: 2394-5869 Impact Factor: 5.2 IJAR 2020; 6(7): 438-443 www.allresearchjournal.com Received: 27-05-2020 Accepted: 30-06-2020 Scheibel J David MBA, Department of Management, Southwest Minnesota State University, U.S.A Dr. Kenneth Uzoma Chukwuba Assistant Professor, Department of Management, Southwest Minnesota State University, U.S.A Corresponding Author: Scheibel J David MBA, Department of Management, Southwest Minnesota State University, U.S.A Unique challenges family managers of family- controlled business have including impartiality among family Scheibel J David and Dr. Kenneth Uzoma Chukwuba Abstract This study explores some of the unique challenges family managers of privately held, family-controlled businesses face, including dealing with impartiality among family members. This research project focused on case studies of small, privately-held family firms that typically arise from a sole proprietorship to include firms with multiple family members. The methods used for this study included personal interviews, direct observation, and analysis of public information regarding the case study subject firms. An interview process was established that consisted of specific questions regarding the topics of interest discovered during the review of the literature section. One or more individuals in each firm were asked to answer the interview questions, including the open-ended questions to allow the subjects to provide their perspective. Individuals interviewed consisted of family members and non-family employees. The data indicates that family-owned firms have dynamics that differ from non-family-owned businesses. These dynamics affect many aspects of management organization, strategic decision- making, and competitiveness. Keywords: Family business, family-controlled business, family, impartiality, privately held Introduction Family-owned and managed businesses dominate the economic engine in most nations throughout the world (Hoy & Sharma, 2010) [5] . Family business is the foundation of U.S. business, often employing multiple generations of family and frequently exhibiting the family name. The long-term survival of family-owned businesses has proven to be a challenge as second and third-generation family members become involved with daily activities and take over management duties. Family firms have a unique dynamic because the family and business are intertwined in many ways. It is essential that family members are prepared to deal with these intricate dynamics to handle the interactions that occur between the business and family. These dynamics and interactions are highly impactful to stakeholders and customers. Background of the Study Over 80% of all U.S. businesses are family-owned, including 35% of Fortune 500 companies. Family businesses account for approximately 60% of all employment in the United States and create 75% of all new jobs. Long-term survival of family-owned businesses has proven to be a challenge, as only about 30% survive into the second generation, while 12% exist into the third generation and just 3% remain as family-owned businesses in the fourth generation (Lesonsky, 2015) [9] . Despite the unique challenges, family-owned businesses have better survival odds than small businesses that are not run by a family team (Lagorio-Chafkin, 2010) [8] . Family firms have dynamics that differ from non-family-controlled business. These dynamics impact many aspects of management organization, strategic decision-making, and competitiveness. Family managers of family-controlled businesses have unique challenges, including dealing with and trying to maintain impartiality among family members (Rousseau, Kellermanns, Zellweger, & Beck, 2018) [16] . International Journal of Applied Research 2020; 6(7): 438-443