A family-run business is usually one in which more than half the shares are controlled by members of the same family, or one that has been passed through generations.

East Lancashire has a large number of such companies, with family firms among some of the most successful.

These include former Lancashire Telegraph Business of the Year winner, Senator International, of Altham; the award winning Rossendale-based Hurstwood Group; brewers Daniel Thwaites of Blackburn; as well as smaller firms like developers B&E Boys, and furniture makers Panelmaster, both based in Rossendale.

Birchall Catering Services, located on Network 65 Business Park, Hapton, started as a corner shop in Burnley nearly 70-years-ago.

After passing through three generations the firm is now the biggest independent food wholesaler in the north west.

Colin Birchall, managing director, said a key to the firm's success was guarding against becoming old fashioned by employing people from within the industry and spending time fully developing new strategies.

He said: "We take the long-term view and we take a great deal of pride in the business because it is our family name and we live in the community.

"A lot of small businesses look to pass the business on to their child and take a long term view which can be different from a corporate entity where shareholders are thinking of immediate profits.

"It is more difficult for corporate businesses to think outside the box.

"Some of the things we do may be more expensive and take longer to achieve but we do them because they just feel right and are right for the customer."

However, running a small business is not as easy as it sounds.

The BDO Stoy Hayward Centre for Family Business reports the odds of a family business surviving into the third generation are as low as 13 per cent. So what can go wrong?

From day one problems can arise. Corporate issues such as share ownership and board structure can become complex and even threaten the organisation as a whole when family members disagree.

Earlier this year research from Coutts bank showed that the main causes of problems in a family business can include the inability to remove underperforming staff, pay levels and sibling rivalry.

Backhouse Jones Solicitors is a law firm which has been in the Backhouse family for seven generations, and is currently run by twin brothers James and Jonathon Backhouse.

Steven Meyerhoff, an employment expert at the Clitheroe firm, said: "We regularly hear from clients that their family controlled business is experiencing difficulties with decision making. It can be very difficult for the board of a non family controlled company to agree to a big decision, never mind when that board is made up of close relatives.

"One tip that I can offer is to ensure that non family members help run the business. They will be able to take a step back, and look dispassionately at how things are being run.

"This will only work as long as the family members are willing to accept decisions made by outsiders, and show them the proper levels of respect.

"Whether family members are involved or not, a company should make money, be able to employ good and reliable staff, and provide a product or service for which there is a demand. Otherwise, what is the point?"

Graham Boyes, chairman of Pierce, the Blackburn-based accountancy and business advisory group, has decades of experience in advising family businesses including how to start up and float on the stock market.

He said: "More often than not I find that the heads of a family run business are more willing to work hard as they have invested their own money and time in the company.

"There can be a great sense of teamwork and loyalty with all profits going back into an organisation run by people who know each other well."

Debbie King, company law partner at Farleys Solicitors, Blackburn, said: "Family businesses often fail to plan ahead and accept the need for change. "At some point all companies will need to put plans in place for instance to hand the business down to a management team or perhaps younger family members, to sell the business as a going concern or wind it up.

"Businesses need to be aware of this and plan ahead."