Family-run businesses are one of the most common types of enterprises in our country, and perhaps the most complex ones as well. They have their own set of strengths and weak points. Family-run businesses hold different business models, cultures, and values in terms of outlook, structure, and management. Most of the family businesses transition across generations, expanding their entrepreneurial beginnings, and this is exactly where they face distinct performance and governance challenges. It is important for family businesses to manage their complex dynamics and adopt professional ways of business management pertaining to modern trends so that they can thrive in the evolving corporate world. We agree that sticking to the conventional way of business operations is indispensable in case of family businesses, but at the same time, focusing on growth trends and opportunities is equally important to implement successful entrepreneurial strategies while restoring shared family values and vision.
Family Business and Economy
The role of family businesses in terms of raising the national economy, wealth creation, and employment generation has always remained significant and commendable. In our country, family businesses have been serving as the rock layer of the economy, with hundreds of publicly-listed family-owned businesses contributing to more than 60% of the nation’s GDP. The financial performance of family-run businesses is generally superior to that of their non-family-owned peers, and that’s exactly why they need to focus more on long-term growth so that they can sustain competition and outperform their peers.
Efficient Business Governance is Vital
Strong governance, coupled with a prudent and dynamic business strategy, is crucial for the success of any business. This is the reason why it is necessary for family businesses to draw on deep industry knowledge and monitor performance diligently. It is important to view the enterprise through the lens of ownership to be able to govern and plan the business for longevity and survive beyond the founder-stage. Developing the potential skills and knowledge as well as learning a range of practice tools and strategies can bring family businesses in a much better position to compete with their peers in the domain. In that sense, a family business-oriented education can certainly add value to the professional and personal development of the members, and help impart a robust shape to the roadmap of the family enterprise system.
It is important for family businesses to remain innovative, agile, and prosperous across generations. Despite all the intricate and complicated family relationships, it takes practicality, strategy, and strong commercial acumen from the part of the family business owners to create a lasting legacy of successful entrepreneurship.
Understanding the Opportunities and PitfallsOpens the Path Ahead
To thrive and sustain in the competitive business world, it is necessary that family businesses hold a better clarity on their path ahead and remain open to embracing the practical concepts and patterns arising in the domain. It is crucial that family business owners remain open to learning from the experiences derived from multigenerational success and failure. A deeper understanding of business matters can provide business owners with a better insight into the family business dynamics and the pressures families are exposed to overtime. Becoming aware of the diverse ways to approach succession, administration, and communication within the family businesses and staying mindful of the potential pitfalls, challenges, and opportunities lying ahead can certainly impart more power to the family businesses. Likewise, taking into account fresh strategic perspectives of qualified outsiders is equally important to complement the family’s traditional knowledge.
Post Graduate Certificate in Family Business Management (PGCFBM), an IIM business leaders program, provides an opportunity for business owners and founders to expand and strengthen their businesses while keeping their family traditions and values intact. This live, interactive, online program has been developed by The Second Wind (TSW) along with Indian Institute of Management Calcutta (IIMC) and delivers the participants with significant market insights and strategic business techniques that can help them add an edge to their family businesses. The program helps business owners understand the nuances of family business management and exposes them to theories related to the functional aspects of the family businesses. Participants don’t just benefit from the in-depth knowledge and sharp acumen of the expert faculty from IIMC, but also earn the alumni status of the prestigious IIM Calcutta. Join the PGCFBM program to learn the art of mastering the challenges intrinsic to family businesses and prospering over the generations.