Family and Business in Micronesia

Hezel, Francis X. (2001-11-24). Family and Business in Micronesia. Micronesian Counselor (Report). Kolonia, Pohnpei: Micronesian Seminar. pp. 1–10.

• Has attachment: File:K5QXSJP5.pdf

Abstract: Not long ago a local hotel owner refused to let one of her relatives drink for free at the hotel bar. The relative responded by accusing the owner of having become too American and, by implication, un-Micronesian. Anyone who has spent any time in Micronesia knows what the relative was referring to: what one family member owns should be shared with other family members. To do otherwise, is being stingy, and that is synonymous with being un-Chuukese, un-Yapese, un-Micronesian.

The family pressure to share what one has with other family members creates obvious problems for a business owner in Micronesia. A business owner anywhere must make a clear distinction between business assets and family assets, because business assets and family assets must be managed according to two different sets of values and priorities. But, the distinction between business assets and family assets, which is often blurred in family businesses, is even more unclear in Micronesia where so much of an individual’s life is encompassed by the family.

The issue of family obligations versus good business practice comes up over and over again in Micronesia. One hears about it when a business owner complains of having to give family as well as non-family members “credit,” otherwise they will shop some place else. Loan officers at the bank hear about it when a borrower cannot make his or her loan payment because money from the business was used to pay for a relative’s trip to Hawaii or a family member’s medical bills...