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Startup
Guide
 Have
a big idea? Dreaming of ‘Kab Banega Crore pati’?
Driving down the road…and flash! You hit upon an idea that
could change the world. An idea that will put you into the annals
of history as a pioneer…but how and where do you start? I’ll
help you find out.
Be
your own ‘Master’
The
family- owned enterprise is one of the most common forms of business
around the world. In many countries they generate more than half
of the Gross National Product (GNP).
Family
owned enterprises have been the norm in India for a long time
and it is only in the recent past that we are seeing a spurt in
other forms of businesses. India has a host of examples ranging
from the giants (such as TATAs, Birlas, Ranbaxy and Godrej) to
small enterprises in every Indian town.
Distinguishing
features of a Family Owned Enterprise are:
1. Employee support in family enterprises is usually stronger
when compared to other forms of businesses.
2. Most family-owned business has a strong community orientation.
3. For the younger generation in such enterprises, there are
a host of learning opportunities, while they are making their
way into the business.
4. Family enterprises have a strong orientation for customer
service through which customer loyalty is generated.
5 . Family firms are resilient because of the high degree
of trust, security and sacrifice that exist within the family.
Members
of such enterprise draw a very thin line between their personal
lives and their business lives. Crucial business decisions can
suffer if there are inter personal issues and family problems.
Very often transition of the business from one generation to the
next causes complications. This could be because of a new way
of operating the business, or even fresh concepts or thoughts
applied for better performance that are not easily accepted by
the previous generation.
The changing business environment has led to doubts about how
some of these enterprises will survive. Communication is the key
to survival. Members of the family have to discuss issues in the
open in a proactive manner before problems arise. Many family
enterprises fail because they have not adapted management practices
and organisational principles such as human resource management
and marketing in their day-to-day operations. In such establishments,
there often is a stifling of professionals within the organisation
and regimented control over independent thought and action.
As a business model, entrepreneurs who wish to start a medium
or small-scale business favour the family enterprise. The family
can raise the resources and also share the profits within. This
enterprise, if it works, offers security of employment for future
generations to come.
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