The Importance of Family Business Management

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March 10 and 11 2018 provide opportunities for aspiring and aspiring entrepreneurs to connect and collaborate. When the best and brightest minds come together and brainstorm how to drive their business growth. This is the most important aspect in any business.

The conference at IIT Mumbai brings together the best entrepreneurs, innovators, venture capitalists, business model creators, consultants, policy makers, academics and business practitioners to present and discuss innovation and success under the auspices of entrepreneurship for Small and Medium Enterprises.

Over the last decade or so, in a dilemma between joining a family owned business and higher studies. Scales has turned to entrepreneurship and joined a family owned business.

Let’s explore its origins and reasons:

Incident

Today, family-owned businesses make up two-thirds of the world’s business and generate the majority of the world’s economic output, employment and wealth. In many areas of the world, family enterprises dominate the economy. “Family-controlled companies now make up 19% of the Fortune Global 500,” says The Economist.

In India alone, 67% of businesses are run by families. McKinsey estimates that by 2025, there will be more than 15,000 companies worldwide with annual revenues of at least $1 billion, of which 37% will be emerging market family companies.

Needs

There is a need for a Family Business Management Program whether you are in a successful family business or you are in a business that is facing challenges and trying to bring about change.

Successful family business:

Successful family businesses become successful because families see important changes in their industry. Simply put, successful families are entrepreneurs. Also, families are successful because they invest in productive activities, emphasize growing assets, and consume relatively little of their wealth. These families nurture a culture that encourages family members to create things of lasting value.

It’s no surprise that these families encourage entrepreneurs. In addition, successful families stick together naturally, keeping supportive members loyal to one another and to the family’s mission. From generation to generation, as families become more diversified, it is likely that only a few relatives per generation will work directly in the business.

Members outside the business may still support the family’s philanthropic efforts or social activities, and sometimes that level of involvement is sufficient to keep the family together. But investing in family entrepreneurship can also keep talented members contributing to the family fortune and the wider mission.

Investing in family entrepreneurs should be done objectively based on the feasibility of their business plan, and also fairly within the family. Even if some entrepreneurial projects don’t work out, these investments will help you find talent to keep your business growing. And you are sending an important message: this family is committed to creating value.

Family business – facing challenges

While family businesses on average perform more strongly than other types of companies, they face different challenges that need to be managed. This constraint often kills the family business.

This creates a need for a Family Business Management course that helps students understand how to take advantage of strengths, navigate challenges, and guard against weaknesses of companies and their families.

How is the Family Business Management program different from the MBA in Entrepreneurship?
Family Business Management and the MBA in Entrepreneurship prepare you to set up and set up your own business. However, there are subtle differences.

Unlike an MBA in Entrepreneurship which prepares students to set up a business, the Family Business Management program is targeted at family business owners who wish to maintain, enhance, and grow their business. Content and pedagogy cover the concepts of entrepreneurship, business sustainability, market trends thereby leading to portfolio expansion and business growth.

This program will help you evaluate the state of your family business and direct you to take your business to the next level.

College/Institute of Entrepreneurship Management
Xavier School of Management (XLRI), Jamshedpur, offers a full six-month Postgraduate Program for the Certificate in Entrepreneurship Management (PGPCEM).

The Indian Institute of Entrepreneurship Development, Gandhinagar, offers a two-year full-time residential Postgraduate Diploma in Business-Management (PGDM-BE).

SP Jain Institute of Management and Research – Mumbai,Start Your Business Certification Program (SYB), Develop Your Business Certification Program (GYB), Entrepreneurial Manager (TEM).

Narsee Monjee Institute of Management Studies, Mumbai, M.B.A in Social Entrepreneurship

Xavier Institute of Management and Entrepreneurship – Bangalore, offers a one year Entrepreneurship Development Program (EDP)

The Nirma Institute of Management, Ahmedabad, offers a two-year regular MBA specializing in Family Business & Entrepreneurship.

Amity Business School, Noida, offers a two-year MBA in Entrepreneurship

IIM, Bangalore, specializes in Entrepreneur & Family Business.

IIM Udaipur, Management Development Program for Women Entrepreneurs.

National Institute for Entrepreneurship & Small Business Development (NIESBUD), Delhi
NIESBUD is the pinnacle institution in the field of entrepreneurship and small business development under the Ministry of Micro, Small and Medium Enterprises, Government of India. Supervise the activities of various institutions and agencies engaged in the field of entrepreneurship development, especially in the field of small industry and small businesses. It also provides various training and development courses for budding entrepreneurs and small businesses.

Make the right choice:

In the world of family business, the entrepreneur we celebrate is usually the founder of the company. If you want to be a founder of a company, start your new venture and learn how to navigate, take a pure MBA in Entrepreneurship.

However, if you want to join your family business and are supposed to nurture and develop the founder’s creations, you are not expected to be an entrepreneur but to understand and carry on the founder’s vision, an MBA in Entrepreneurship will be more helpful.

Therefore, it is important for you to make the right and right choice…

Are these mutually exclusive?

If this makes you think that family business management programs are not compatible with entrepreneurship. The reason is because they are for students who are in a family business that is usually tradition bound, multi-generational. Let me tell you, we need to blur the lines here. Family businesses should be more entrepreneurial. They need to continue their entrepreneurial mindset and skills.

To create new streams of wealth across generations – not just passing on business from one generation to the next. We need to come up with the concept of ‘family entrepreneurship’. As leadership transitions occur in family businesses, new generations of leadership must take care to nurture and build on the networks and knowledge of previous leaders, while expanding their own networks.

This will ensure that the business can continue to be entrepreneurial in the future.

And when they do, the distinction between Entrepreneurship and Family Business Management studies will start to blur…

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