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!
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]
Co-founder – Nikita Maheshwari & Shikhar Maheshwari
In last 5 years, we all have grown up experiencing e-commerce and tech-enability making convenience a form of lifestyle. Everything is just a click (and these days rather a fingertap away).
Food, clothing and now housing (the quintessential Roti, Kapda aur Makkan) have all found their way to the 5-inch platform. Amongst all the others having your own Makaan is everyone’s lifelong dream. However, despite several platforms coming up on the ‘buy, sell and rent’ model there was a visible gap in the home décor, beauty and aesthetics segment in the construction industry. One can definitely buy, sell and rent houses but what about homes? Here is where me and my brother saw a window of opportunity.
We decided to venture into coverings and tiling. The idea was even more workable due the proximity of Morbi to Ahmedabad. This small town houses an industry size of USD10 Billion within the periphery of 50 Km. having almost 1500 manufacturing units for tiles, sanitary ware and other coverings. However, the biggest challenge was that the market having huge potential is highly unorganized making it inaccessible to the the right customer at the right time.
Thus, Tilebazzar was born. We wanted to bridge the gap between the manufacturing industry and the consumer and in turn helping the industry to organize itself on the virtual space. We wanted to provide every stakeholder a levelled platform to reach out to the masses across the country. We at Tilebazzar aim at providing a variety of choices at affordable price under one roof and also to provide end-to-end solutions within budget to beautify houses for customers and also provide greater exposure to the small and medium enterprises at Morbi to to come on board and showcase their products.
To make Tilebazzar a reality and covert the idea into right product, it was very important that the stakeholders understood the concept and tell us their problems. Thus, we created a beta website and conducted our market research for 6 long months formulating different services that would assist everyone- Manufacturer, Builders, Architects, Dealers, Developers and the Government as well. Our moto stands simple – Every Covering @ Every Price.
We are planning to launch Tilebazzar by the third week of May. We are proud to be first of its kind platform which shall not only provide you coverings but also provide creative solutions so that you get your dream house in just the way you imagined it to be.
Tilebazzar plans to do two things in future – Firstly, bring a behavioral change in the way our county perceives aesthetics in Building & Construction Industry. Secondly, we also want to make Morbi the epicenter of Ceramic/Vitrified Tiles, Sanitary and other coverings for the world in next 5-7 years. Myself and Shikhar want to make this town as Ceramic “Silicon” Valley because we understand our true success does not only lie in our personal achievements but also in the success of each and every stakeholder involved in the process right from the grass root level.
P.s. To every woman entrepreneur out there- if you are taking a chance to enter a male dominated industry, don’t back down, you will find your place give it time. But walk tall and stay strong.[Top]