Management of family businesses is important

Are you ready to take the controls?
A chance for budding entrepreneurs to meet and collaborate was offered on March 10th and 11th 2018. The best and brightest minds gathered together to brainstorm on how to grow their businesses. It is the key aspect of any business. IIT Mumbai hosted a conference that brought together top entrepreneurs, investors, venture capitalists and business model creators. It also included policy-makers, academicians, policy-makers, and business practitioners. The event was organized under the umbrella of Entrepreneurship for Small and Medium Businesses.

In the last decade, there has been a dilemma about whether to join family-owned businesses or pursue higher education. These days, the scales are shifting towards entrepreneurship and family-owned businesses.

Let’s look at the origin and why it matters:

The Genesis
Family-owned businesses make up two-thirds today of all businesses worldwide and contribute the most to the world’s economic output and employment. Family-owned businesses dominate many parts of the economy in many countries. According to The Economist, 19% of Fortune Global 500 companies are now owned by family businesses. Only 67% of Indian businesses are family-owned. McKinsey predicts that there will be over 15,000 businesses worldwide with revenues of at least $1B annually by 2025. 37% of these will be family-owned emerging markets firms.

The need
Family Business Management Programs are needed, regardless of whether you own a family business that is successful or if you have a business that is facing difficulties and needs to change.

Family business that succeeds:

Family businesses that are successful have families who see significant changes in the industry. Entrepreneurial families are simply successful. Families are successful because they invest in productive activities and emphasize growing assets. They also consume relatively little wealth. This culture encourages families to make lasting things. These families are known for encouraging entrepreneurs. Furthermore,successful families remain reasonably united, keeping supportive members loyal to one another and to the family’s mission. As families grow more diverse over time, it is possible that only a small number of relatives will work directly in the business.

Family members outside the business might still support philanthropic efforts and social activities. Sometimes, that level of involvement can be enough to preserve family unity. However, investing in family entrepreneurs can help talented family members contribute to the greater family’s wealth. Family entrepreneurs must be evaluated objectively, based on their business plans and fairness within the family. Even if not all entrepreneurial ventures succeed, these investments can help you identify talent that will allow your business to grow. You are also sending a message that your family is committed creating value.

Familial businesses face challenges
Family businesses are on average more successful than other types of enterprises, but they also face unique challenges that must be addressed. This can often lead to the death of a family business.

Family Business Management is a course that helps students to understand the strengths and challenges of family-owned businesses and how to protect them from the flaws.

What is the difference between a Family Business Management program and an MBA in Entrepreneurship.
An MBA in Entrepreneurship and Family Business Management prepare you to start and manage your own business. There is however a subtle distinction. The Family Business Management programme, unlike the MBA in Entrepreneurship, prepares students to start a business. It is designed for family business owners who want to scale, sustain and grow their business. The curriculum and pedagogy include concepts such as entrepreneurship, business sustainability, market trend analysis, and portfolio expansion. This program will help you assess the current state of your family business and guide you in your quest to take your business to the next level.

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