Family businesses go on for generations together. This gives them an easy advantage over non-family businesses as they have deep industry knowledge of what’s happening currently and the past trends too. That’s not all, they have the commitment and passion towards the success of the business and the industry knowledge helps them to take informed market-focused decisions.
Let’s go through each of these advantages in detail:
- Dedication and passion towards the business goal: In a family business, often non-family members too are treated as a family. This strong relationship built with the employees and other stakeholders result in fruitful daily operations as everyone works towards achieving one goal. While the owners tend to take better care as they have their stakes involved in the company, it makes a huge difference when the employer is appreciative of the employee’s talent.
- Decision making: Not having responsibilities towards any shareholders gives the Indian family businesses greater flexibility in terms of making decisions faster, improving the speed with which they launch new initiatives, change operations, evaluate new business opportunities, etc.
- Industry insights: Family businesses work in one industry for longer durations. This gives them significant experience and expertise. They understand the pulse of the market and their consumers well over non-family businesses. This makes them ready for any challenges.
- Mutual trust: Family businesses thrive on mutual trust and believe in maintaining long-term relationships by providing a conducive, supportive and trusting work environment.
- Reinventing entrepreneurs: The Family Business Survey conducted by PWC suggests that:
- 74% of respondents think that family businesses being more entrepreneurial in nature
- 62% think that family businesses generate more employment in the market
- Nearly 60% of the respondents felt that they reinvent themselves with each generation
Family businesses take pride in their contribution towards providing a greater balance and stability to the economy and are more likely to take greater risks than the non-family businesses. While there are downsides of the family business, it’s their industry knowledge that keeps them going generations ahead!
We know of entrepreneurs today who kicked their 9-5 job as they wanted to be their own boss! They had absolutely zero entrepreneurship background but still made a remarkable benchmark in their field of business. But there are individuals for whom it runs in their family. These individuals have decided to take up entrepreneurship because they have grown up seeing their family run a business of their own.
It shows that it is not impossible for family businesses to keep the entrepreneurial fire burning. While the next generation may not have the same spur in them as the founder of the business. The key is to keep EVOLVING.
Here are few factors that make it possible:
- Knowing the history of family business: When an Entrepreneurial Legacy is passed on, it is important to know for the current gen or the next gen handling the business to know where it started from and what their ancestors did to run the enterprise. A study conducted by King’s college in London where they studied 21 family businesses showed that lack of knowledge has actually proved to be a loss for the business. Whereas, the businesses who had proper understanding of the history, compared the past and present and accordingly innovated and hence they were able to make profit.
- Youngsters get started early: When the young generation is taking over the family business reigns, it is important to involve them early in key decisions. At the same time, it is important to give them a chance to make mistakes and learn from them. It gives them a room to innovate and explore their strengths and weaknesses.
- Making practical education mandatory: While there are individuals who have the entrepreneurial traits in their genes, it is important to get a global perspective of businesses which is only possible through education in a recognized B-school and on-the-job learning in other companies.
- Learning from the younger generation: As we mentioned, the key to a successful business is to evolve. The young generation will have ideas of their own. Allow them to explore and the current generation handling the business will have to learn with them. This helps the organization to keep up with the changing trends. Also, everyday is a new learning!
So, if you have an entrepreneur in the family, tell them the tales of your business and motivate them to take your legacy forward. For the next gen who are looking at taking over their family enterprise, get to the roots first and you will know how to take it forward!
A new Technology Business Incubator (TBI) of the famous Entrepreneur Development Institute of India (EDII) is all set launch, known as the Centre for Advancing and Launching Enterprises (CrAdLE), to support entrepreneurs in getting their new businesses started. The ambitious plan aims to work with about 40 startups in a course of three years. Each of these budding companies would be expected to create 100 jobs each, thereby creating over 4000 jobs in all.
CrAdLE will have Infosys co-founder Kris Gopalakrishnan as its first chairman of its advisory committee. The board would comprise of seasoned entrepreneurs, technologists, venture capitalists, academicians and other professionals from the specific domains that the centre aims at promoting. Businesses will therefore benefit immensely from specialized knowledge and the right technological support for smart organization, communication and selling. In addition, enterprises incubating in CrAdLE will go through review parameters to give them an exact measure of growth they have witnessed in various stages.
CrAdLE will be set up at EDII’s Ahmedabad campus, and a space of 10,000 square feet has been marked for the same. The centre should be up and about in a matter of a few weeks now. Its main focus, as of now, is to help nourish businesses in four sectors: manufacturing, healthcare, renewable energy and food and agriculture.
Gujarat is recognized to have a sizeable number of naturally entrepreneurial people and Ahmadabad shows fine signs of becoming India’s next start-up hub particularly in the non-IT sectors. With the right institutional support, businesses started here can thrive not only in India but in international markets as well. Gopalakrishnan believes EDII’s TDI to be an excellent resource for entrepreneurs, especially at this point of time when there is a most conducive climate of encouragement to new enterprises coming from the PM himself.
Besides facilitating the essential hand-holding to companies in their nascent stages towards a seamless commercialization of ideas, knowledge and technologies, CrAdLE will also provide assistance in legal, financial and technical matters. Moreover, all entrepreneurs who are part of the program will have access to additional sources of funding besides a fund of Rs. 10 crore from the DST for 5 years.[Top]
Startups are fast beginning to make a name for themselves across the country with all that they are achieving. It wasn’t long ago that a new startup, started by our student Rishabh Hundia which aims at meeting a production gap for busbars, took its first steps into the world.
The Inspiration behind the Idea
The idea that laid the foundation for the emergence of Bus bar Manufacturing arose when the Rishabh Hundia was attending a ‘Make in India’ conference. It was at that same moment that the student’s father advised him to look at the copper bus bar market and see if that line of business appealed to him.
Belonging to a family that has been in the metal industry for the last four decades, Rishabh Hundia has always been around metals and had grown up with the desire to work with them. This was what gave birth to a love and attraction towards metals, right from a young age. This was how the first seeds of a Bus bar manufacturing startup came to be planted in his young, innovative mind.
About Busbar Manufacturing
The way a bus bar works is that it conducts electricity within various heavy electrical appliances. It is also used for switchboards, substations or distribution boards. Copper busbars are very useful for power grids as they help bring down the power loss substantially. They are used to conduct a substantial current of electricity but the amount of current that can be carried in them depends on the composition of material used and the cross-sectional size of the busbar.
However, the current condition of the metal industry as a whole is not at a very good place, on both the national front as well as the international front. So given that the industry is in a difficult situation, right now this young entrepreneur is working on learning about the situation in the country so that he can come up with a good plan of revival. If all goes well, the future for copper busbars is likely to be bright.
The Future of This Startup
By trying to stick to the ‘Make in India’ policy, wherein the Government focuses on setting up manufacturing units in India, there is certainly a lot of potential for this company to grow. There will certainly be a lot of demand for the product by new manufacturing units that will require it for electrification purposes.
However, currently copper busbars are being imported in thousands of tons into the country and since 2010, the demand for them has been growing at 11 percent every year.
How Has EDII Aided the Growth of this Startup?
EDII has been a learning ground that provided mentors and the right faculty to bring Rishabh Hundia’s idea to fruition. Not only do they strive to turn students into entrepreneurs but they also provide entrepreneurial experiences in different sectors.
After EDII scrutinized the student’s DPR and once it had received the stamp of approval by various industry experts and learned faculty, it gave this young entrepreneur the confidence he needed to venture out and put his idea to the test.
Many students that have passed out of EDII has testified to say that the institution does provide the best faculty and mentors who help students turn their ideas into a reality and this was what was responsible for Busbar Manufacturing becoming a reality and one with a bright future awaiting it. What’s more, EDII also provide the much needed seed capital to its deserving students to help their start-up idea see the light of the day.[Top]
Even though most of us live in a world where owning a car is a necessity, some basic maintenance needs to be followed. The most important one being- getting your car washed from time to time. A regular washing job helps protect the exterior of the car and ensure that the dirt and grime does not eat into the paint.
However, washing the car without the right tools can be a tiring and time-consuming job. This is why car washes are increasingly sought out by car owners who don’t have spare time on their hands. This is where Enzo Daily Car Wash – a recent startup by our student Rahul Gonsalves – comes into the picture.
The Inspiration behind the Idea
When cars are washed on a daily basis, a practice that is rampant today. there is always a lot of water wasted. After two to three months, the surface of cars starts to look dull. This is because servicemen mostly use unclean practices and follow an unhygienic process of cleaning wherein the same water and cloth is used for over 10 cars. This results in scratching the surface of the cars and causing them to look dull. It was this observation that led to the idea of providing customers with a ‘waterless, one cloth per car’ service.
What Does Enzo Daily Car Wash Have to Offer?
Enzo Daily Car Wash has been designed to provide a quick, waterless solution to professional car care. The product used is a high lubricating mixture that removes the dirt from the surface of the car and leaves it with a shiny finish. This product that they have created is an in-house product that has proven to be effective but which is not up for sale so you are not likely to find it elsewhere.
Currently, the startup provides prompt home service to customers. All you have to do is give them a call and they will have their team at your doorstep to wash your cars every day. Daily customers will be provided the service at an average cost of Rs13/- per day while retail customers will have to pay Rs. 50/- for the job. These prices are the lowest in the industry as this startup aims to provide you professional car care at affordable rates.
The reason they are able to provide their services at such low rates is because they have created a unique value chain of self manufacturing where they manufacture all related products themselves and use it to provide the service, this refuces the swelling of costs due to supply chain intermediaries. Currently providing their car wash services in 11 residential complexes, they are still looking to expand and are expected to start their service in four more localities by June 1. The startup has already partnered with a leading oil company and has set up wash stations at 25 petrol pumps along with an exclusive full wash outlet.
How EDII helped Enzo Daily Car Wash?
EDII aided the young entrepreneur in perfecting a business model for the startup. The knowledge and input offered there helped create an exclusive system of manufacturing and customer acquisition where they can service 321 cars with an investment of just Rs 1,20,000. EDII has assured Rs 3,50,000 as startup capital against the money invested. With the rate at which the company is growing, it expects to save at least 3,00,000 liters of water by December 2016 due to the direction and assistance offered by EDII. Most of the funds will be utilized to help the startup reach out to new customers.[Top]
Frosty December chill evaporated for three whole days when large number of athletes from different colleges of Gujarat gathered at EDII campus to take part in interollegiate sports extravaganza, Equipo. The sports event was organized by the Students Welfare Committee of EDII during 17th to 19th December in the year 2015. The event saw overwhelming participation from colleges from leading cities of Gujarat like Ahmedabad, Gandhinagar, Surat, Vadodara and Bhuj.
The event included both indoor and outdoor games. Outdoor games like cricket, football, lawn tennis, basketball and volleyball received wholehearted participation from the athletes. Indoor games such as table tennis and chess too were received well by the contestants.
EDII students made their mark in all the sports but in badminton and table tennis (girls), they delivered extraordinary performances and won medals. Adani and SPM were runners up in these games. PDPU students delivered commendable performance and secured the first position in volleyball, basketball and lawn tennis (boys). NIRMA won the table tennis (boys) tournament whereas IRMA stood number one in Chess. LDRP was announced champion in Cricket. EDII students stood as runners up in most of these sports. EDII organizes such events to create sense of harmony among colleges and Equipo served the purpose well. The institute looks forward to organize many such events to connect youths across the state.[Top]
Government of India and leading financial institutions like HDFC, LIC, UTI, SBI promote Infrastructure Leasing & Financial Services (IL&FS) to implement projects related to clusters and education in African countries. IL&FS Education and Technical Services (IETS), a wholly owned subsidiary of IL&FS approached EDII to organize in-country orientation programmes on Entrepreneurship Development.
IETS, the Programme Management Agency of GoI’s Department of Commerce assigned the task to EDII under the aegis of 2nd India Africa Forum Summit (IAFS II) to carry out orientation programmes in six African countries Benin, Burkina Faso, Chad, Nigeria, Uganda and Malawi to strengthen cotton sector. Associate Senior Trainer at EDII, Mr. S.B. Sareen conducted orientation programmes in two African Countries Benin, Cotonou (West Africa) and Abuja, Nigeria from 1st March to 5th March.
The programmes chiefly aimed at sharpening entrepreneurial skills and changing the mindset about entrepreneurship. The programme was well received by the participants. Officials of Government Institutions, Financial Organizations and potential as well as existing entrepreneurs participated in the programme.
Mr. S.B Sareen, the Course Director was contented with overwhelming response to the programme. He said, “The programme encouraged private sector, support system and Government to boost entrepreneurship in African countries.”[Top]
Technological brains garner skills to establish knowledge based enterprise
It is now widely accepted that women make promising managers. Slowly but steadily women are also emerging strong in the field of science and technology. Innovative business ideas need support from science and technology to survive and sustain in the global market. Thus the unprecedented need for entrepreneurs with sound technical knowledge has emerged in the recent times. EDII thought that women with sound technical knowledge can make the most of opportunity and that is why launched a five-day national programme on Entrepreneurship Development & Management for Women Scientists & Technologists working with the government sector.
The programme conducted during 2 to 6 February this year, received overwhelming response from the participants. 14 women scientists and technologists working in various departments and ministries of Central Government, Public Sector Units and Research institutes supported by Central or State Government participated in the programme. Some academicians engaged in R&D also registered for the programme. The programme was sponsored by Department of Science and Technology, Government of India. The chief aim of the programme was to sensitize women scientists and technologists towards embracing entrepreneurship as career.
Till now, there is little done in the area of knowledge based entrepreneurship. This programme helped the participants understand the importance of owning knowledge based innovative business ventures. The curriculum covered core aspects of entrepreneurship such as process of business idea generation, project formulation and screening for feasibility.
It has been observed that even if women have basic knowledge of entrepreneurship, they are unable to identify and develop market for this. Though there are national and international institutions that support these kinds of endeavours, women hardly have information about these institutions. The participants received all the necessary information about garnering support from such institutions.
The scientists and researchers also learned about how to use basic and applied research as a tool for business planning.
The participants were very happy to garner skills of identifying business opportunities. One of the participants shared her experience by saying, “I never knew that I can be an entrepreneur. Now that I have learned about new enterprise creation, business plan preparation and everything about establishing and managing a new enterprise, I am sure I am going to come up with my own knowledge based enterprise.” The curriculum also touched upon gender issues at the workplace.
The programme was conducted by Mr. P. Ganesh, Associate Senior Faculty at EDII. The programme included intensive group discussions, role plays, and simulation exercises hence demanded constant involvement from the participants. The Course Director Mr. P. Ganesh expressing his contentment said, “I used audio-visual medium to make participants understand key issues of entrepreneurship development and management. The participants also got an opportunity to interact with subject experts and successful entrepreneurs.” Towards the end of the programme, the participants were motivated to establish their own knowledge based enterprise. The programme supported institute’s belief that women empowerment is essential to bring much needed change in society.[Top]
With a view to strengthen entrepreneurial bonds across the globe, EDII has joined hands with University of Oklahoma’s Gaylord College of Journalism and Mass Communication. Centre for the Creation of Economic Wealth (CCEW) and BRAC University to have collaborated in this Professional Fellows Programme (PFP) to provide professional experience and training to the participants. As a part of outbound exchange, five delegates from Oklahoma, United States visited EDII during 4th to 14th January in the year 2016.
The delegates were from the U.S and Gaylord College of Journalism and Mass Communication. The prime purpose of the visit was to understand workings of small and mid-level industries of India. The delegates also visited large as well as multinational companies to catch hold of mechanisms of Indian industries. They paid a visit to Indian institutes of excellence like EDII, MICA and NIFT during their stay in India.
Senior faculty at EDII, Dr. Sanjay Pal orchestrated the activity. He said, “The delegates were happy to learn about micro, small, medium and large scale industries of India. This year in the month of May, Indian participants from diverse fields like media, industries, mass communication, NGOs and entrepreneurs will visit Oklahoma to understand the nature of industries in the U.S.” The programme was managed by EDII.
During their visit to EDII, the delegates had in-depth discussion with the Director of EDII. They acknowledged role of institutes like EDII in promoting entrepreneurship in India and abroad.
Global View on Indian Industries:
Joe Foote, University of Oklahoma: I have worked on communication projects in Asia, Africa, Europe and the Middle East for more than two decades now. I am amazed to learn that in spite of great dissimilarities in cultures and languages, Indian industries are strongly connected to each other.
Leslie Christopher, BOLD Multimedia: Indian industries are good at manufacturing but on customer service front, India still has a scope for improvement. Industries should make sure that client needs are understood and should strive hard to fulfil their expectations.
Quinn Vandenberg, Co-Founder and Owner, Life Out of the Box: The industries established by artisans in India are facing the same difficulties in gaining market share as those in other developing countries. Incubators should play an active role in supporting such units and boost entrepreneurship at grassroots level.
Sarah Beth Cullison, Elemental Coffee: Coffee industry is my area of interest. I have studied agricultural, trade and financial aspects of coffee productions for over three years. India is one of the leading countries in coffee production globally. I believe that coffee industry in India has much scope for exposure on global front.
Korey McMahon, McMahon Marketing: Despite quality products, Small and medium industries in India struggle to make mark at global level. This is because they lack skills in marketing. I strongly believe that investment in marketing and advertisement should be looked at as business investment by small and medium industries.
Institute Helps Comoros Get Vocational Training Centre
The institute has been entrusted with the work related to feasibility for establishing a Comoros-India Vocational Training Centre at Comoros. The task has been assigned by Ministry of External Affairs, Government of India. EDII worked in close association with the MEA and Embassy of India, Antananarivo, Madagascar to accomplish the goals of the assignment.
Two faculty members from the institute visited Comoros and helped prominent stakeholders understand the skill gap in the country and scope for vocational training centre. Post-visit, the institute submitted a detailed report to MEA which included rationale for setting up the centre, portfolio of activities, training and capacity building needs of Comorian faculty members, physical infrastructure needs, cost of training aids and machines, financial requirements and sustainability strategy for the centre. Capital and running costs for the Centre too were discussed.
Mr. Raman Gujral, Associate Senior Faculty at EDII and one of the members who was a part of this assignment said, “There is a need to impart an entrepreneurial routeing to countries, the world over. Comoros abounds in resources that need to be channelized, and this is possible only with entrepreneurial efforts. Interventions in this direction will give a strong entrepreneurial purpose to the country.”[Top]
EDII in association with DIPP and CII conducted panel discussion on Start-up India
Start-up India campaign, launched by Honorable Prime Minister Shri Narendra Modi has created nationwide buzz. The youngsters are stimulated to come up with innovative business ideas and establish their own enterprises. With a view to analyse the scheme and spread awareness about it, the institute in association with the Department of Industrial Policy and Promotion (DIPP), Govt. of India and Confederation of Indian Industry (CII) organized a Panel Discussion and Live Streaming of the launch of Start-up India on 16th January.
The Members on the panel were Dr. Chandan Chatterjee, Director, Centre for Entrepreneurship Development, Gujarat; Mr. S. B. Dangayach, Chairman and Managing Director, Sintex Industries Ltd.; Mr. Manasvi Thapar, Founder, Candour Legal and Dr. Sunil Shukla, Director, EDII. The panelists gave insights into issues such as; understanding start-ups, taxation, FDI in key sectors, incubation centres for start-ups, single –window clearance system, benefits for rural India from the Policy and other critical aspects related to setting up and sustaining businesses.
Director of the Institute, Dr. Sunil Shukla expressed his views on Startup India by saying, “This new policy could act as a game changer. I am sure it will promote innovative ideas and add value to society. It is high time that the effort be made collective – the institutions, corporate and government must join hands to create an eco-system which is conducive for start-up germination.”
Eminent Panelist Mr. S.B Dangayach stressed on importance of incubators in cultivating start-up culture in India. He said, “Startup Incubators are important to create an environ where pre-ideas are incubated, technological solutions are applied, prototypes are created, markets and networks are established and products are successfully produced. Incubators will ensure support of domain experts, academic institutions, known entrepreneurs and professionals, thus making it simple for the entrepreneur.”
Government has launched similar initiatives in the past to facilitate first generation entrepreneurs but somehow they did not meet glorious success. Dr. Chandan Chatterjee, Director of Centre for Entrepreneurship Development, Government of Gujarat said, “I would urge all would-be entrepreneurs not to get discouraged by hassles by viewing things from the outside, but to take the plunge after a preliminary scanning and after chalking about a level wise target. Only when they face the first level, will they get ready for the second. I can see an amiable environment setting in, where one step will automatically lead to the other.”
Founder of Candour Legal Mr. Manasvi Thapar put emphasis on single window system with reduced complexities in licenses and taxes to trigger start-up culture. He further said that corporate must also adopt a start-up to increase its chances of success. The panelists were hopeful that Start-up India will bring a change in the mindset about entrepreneurship in India. With several changes in Government policies, it will also fasten growth of start-ups in the country.
The participants learned about techniques to crack job interviews. The one-month training prepared participants for employment. It focused on developing skills in English speaking and computer using capacity of the participants. The programme also aimed to develop self-confidence among participants. Contented with the outcome of the programme, the Programme Director Mr. V.S Sukumaran said, “All the participants were placed for internship in different government institutions after completion of classroom training. The results are indeed heartening.”[Top]