An important part of the businesses in the world and in Turkey is a family business. In this context, the economy is largely dominated by family businesses. Literature studies showed that nepotic approaches are more common in family businesses than in other businesses. Nepotism, the problems that the family business has caused; non-institutionalization, increase in labor turnover rate, decrease in organizational commitment, decrease in productivity. It is directly related to the solution of nepotism problems in the family business, the increase of the market share, and the extension of the life span. This article is about nepotism and family businesses; success in family business, failure, strategy, etc. aims at conceptual evaluation of the effect in a holistic approach from the angles and within the frame of institutionalization.